Egypt-Based Dsquares Acquires Stake In Prepit

Egypt-based Dsquares, a provider of loyalty and rewards solutions, has acquired a majority stake in Prepit, an Egyptian B2B software-as-a-service (SaaS) loyalty platform focused on artificial intelligence (AI)-driven solutions for the food and beverage (F&B) sector. The financial details of the acquisition remain undisclosed. 

Founded in 2012 by Ayman Essawy, Marwan Kenawy, and Momtaz Moussa, Dsquares specializes in customized loyalty programs for industries such as banking, telecom, retail, and fast-moving consumer goods (FMCGs).  

Prepit, established in Egypt in 2022 by Karim Hussein and Tarek Afia, leverages AI-powered technology to streamline operations for F&B businesses. Prepit’s AI-driven platform enhances operational efficiency by automating inventory management, menu optimization, and customer segmentation, allowing F&B businesses to leverage data-driven insights to make informed decisions regarding product development, marketing strategies, and operational improvements. 

The acquisition comes as the Middle East experiences unprecedented growth in the F&B and e-commerce industries. With smartphone penetration surpassing 97 percent and digital transformation accelerating across the region, the demand for seamless, tech-driven loyalty solutions is increasing.

The Egyptian loyalty sector is projected to grow at a compound annual growth rate (CAGR) of 10.3 percent, reaching US$785 million by 2028, while Egypt’s F&B industry is expected to expand at a CAGR of 15.47 percent from 2025 to 2030. Backed by a vast network spanning 16 countries and strategic partnerships with global giants like Vodafone, PepsiCo, and Visa, with this acquisition, Dsquares aims to scale its operations across key markets in the Middle East, including Saudi Arabia, Egypt, and the UAE.  

In addition to providing AI-powered recommendations and advanced algorithms to analyze consumer behavior and suggest relevant products, services, and exclusive offers, the combined platform will introduce personalized rewards through gamified loyalty programs. With Dsquares loyalty and rewards ecosystem and Dsquares' Campaign Command Centre, along with Prepit’s AI-driven SaaS platform and automation tools for the F&B sector, the new platform will enable businesses to craft tailored interactions that resonate with individual customers, boosting engagement and fostering lasting brand loyalty. 

In an interview with Inc. Arabia, Kenawy, CEO of Dsquares, told us that, while the region's loyalty landscape is changing fast, it is often outpaced by the change in customer behavior. “Since 2012, Dsquares has been providing various customer retention and customer engagement solutions to a plethora of businesses," Kenawy said. "This allowed us to grasp the essence of customer behavior and know exactly how customers from different industries and different segments should be rewarded. Bringing this to the partnership allows Prepit to benefit from our different scenarios and use cases, empowering their portfolio and fine-tuning their already-robust solutions.” 

According to Kenawy, the acquisition is expected to bring several key impacts. First, it will help achieve operational efficiency through the automation of processes like inventory management and menu optimization, helping F&B businesses reduce costs. Additionally, its tailored loyalty programs are designed to strengthen customer relationships and enhance brand loyalty, improving customer retention. Finally, the acquisition will further help Dsquares, which already has a presence in 16 countries, as it expands its regional footprint, allowing the company to scale its operations to diverse industries across markets like Saudi Arabia and the UAE.  

The integration will also enable the creation of highly personalized experiences by combining Prepit’s AI-driven insights with Dsquares’ Campaign Command Center. Kenawy highlighted key features of the integration, including trigger management for rewards linked to actions like purchases, reward customization, which provides personalized incentives, and enhanced user engagement through gamified elements such as leaderboards. He also noted that customers could expect hyper-personalized rewards driven by AI recommendations, eco-conscious options like sustainable dining rewards, and real-time analytics to provide deeper customer insights, empowering businesses to create more effective campaigns. 

Kenawy also pointed to Prepit’s AI-powered platform and the diverse businesses it has supported, in addition to its solid reputation, as key strengths of the company. While Prepit’s solutions are tailored to specific sectors, Kenawy believes that adjusting and enhancing Prepit’s platform with Dsquares’ expertise will enable the platform to serve a wider range of industries. “If we are to look at the e-commerce sector specifically, Dsquares will be able to add existing solutions and modules, such as the offer recommendation engine, to the agile and AI-driven platform," he explained. "This combination can serve this sector’s customers, with a proven success rate in other industries." 

He added that the integration of Prepit’s gamified loyalty programs with Dsquares’ existing offerings will also foster enhanced hyper-personalization, customer engagement, and retention. "Gamification, a proven strategy for enhancing user interaction, will be a key component of the combined platform," he said. "Prepit’s expertise in AI-driven gamification will allow Dsquares to introduce features such as trigger-based rewards, micro-rewards, and badges to its loyalty programs. These elements are designed to motivate customer behavior through instant gratification and recognition, ultimately increasing engagement and retention rates." 

Kenawy added that the partnership will also enhance Dsquares' offerings owing to Prepit’s strong expertise in the F&B space, saying “Prepit’s specialization in the F&B sector complements Dsquares’ existing portfolio by adding operational tools that optimize inventory management, menu planning, and customer segmentation.” By merging Prepit’s operational AI with Dsquares’ loyalty expertise, Kenawy emphasized how this partnership positions MENA’s F&B operators to capitalize on the growing market while addressing region-specific challenges. “As AI adoption grows at 33.8 percent CAGR in the Middle East and Africa, this collaboration could redefine how small and medium enterprises compete with global chains, fostering a more resilient and innovative F&B ecosystem across the region," he said.

Kenawy highlighted how the integration of Prepit’s SaaS-based platform with Dsquares’ technology supports regional strategic initiatives. “The integration of Prepit’s SaaS-based platform with Dsquares’ technology directly supports the region’s strategic initiatives such as Egypt’s Vision 2030, Saudi Vision 2030, and We The UAE 2031,” he explained. “The integration will drive sustainable economic growth through innovation and digital transformation. For instance, Saudi Arabia's Vision 2030 emphasizes inclusive development, environmental sustainability, and technological advancement — all areas where this partnership excels.”  

The partnership brings several key contributions to the region’s strategic goals, according to Kenawy. First, it drives economic frowth by equipping SMEs with advanced AI tools that improve operational efficiency and profitability, particularly in sectors like F&B and e-commerce. Additionally, the platform aligns with sustainability goals by offering features such as eco-conscious dining rewards that support environmental objectives. Lastly, it helps to support the digital transformation by promoting digital adoption across businesses, creating a tech-savvy ecosystem that contributes to long-term development.  

“By addressing these regional priorities, the collaboration between Dsquares and Prepit not only transforms customer loyalty, but also contributes to broader socio-economic progress in Egypt and beyond,” Kenawy concluded. 

Pictured on image: The teams of Dsquares and Prepit. Image courtesy Dsquares.