Sector: Digital Economy & E-Commerce Transaction Type: Cross-Border Investment Round Key Role: Lead Egyptian Legal Counsel (Due Diligence) International Partner: EPENA Law

Executive Summary

As foreign capital flows into Egypt’s digital economy, legal due diligence (LDD) has become the gatekeeper for deal execution. Consortio Law Firm served as the Lead Egyptian Counsel for a major investment round targeting Kenzz, a fast-growing social e-commerce platform.

Working within a multi-jurisdictional framework, Consortio conducted the local legal due diligence while coordinating with international partner EPENA Law, ensuring a seamless assessment for foreign investors entering the Egyptian market.

The Transaction: Social Commerce at Scale

Kenzz has emerged as an innovator in Egypt’s retail landscape, pioneering a “social commerce” model that combines online shopping with community-driven group purchasing. This scalable, technology-driven model attracted significant interest from regional and international investors seeking exposure to Egypt’s consumer-tech sector.

The investment round was complex: it involved foreign capital flowing into an Egyptian operating asset, which was itself held through a structure of offshore foreign entities.

The Challenge: The “Dual-Layer” Risk

Transactions in the digital economy often face a specific hurdle: Regulatory Ambiguity. E-commerce platforms operate in a fast-moving regulatory environment (Consumer Protection, Data Privacy, FinTech laws).

  • Investors needed certainty on the local operating entity’s compliance with these evolving Egyptian laws.

  • Simultaneously, they needed assurance on the foreign holding structure.

  • A fragmented approach (using disconnected law firms) risks delaying the deal due to conflicting risk assessments.

Consortio’s Role: The “Ground Truth” Investigation

Consortio was appointed to lead the Egyptian Legal Due Diligence, providing investors with a deep-dive assessment of the local asset. Our scope included:

  • Corporate Health Check: Reviewing incorporation validity, shareholding chains, and constitutional documents.

  • Regulatory Compliance: Assessing the platform’s adherence to Egypt’s E-Commerce regulations, Consumer Protection Law, and digital licensing requirements.

  • Commercial Exposure: Analyzing key supplier contracts, logistics agreements, and operational liabilities.

  • Risk Identification: Flagging specific local legal risks that could impact valuation or post-closing operations.

International Coordination: The Ecosystem in Action

Once again, Consortio leveraged its Operational Ecosystem to streamline the deal. While we handled the Egyptian asset, our partner EPENA Law managed the due diligence for the foreign holding entities and offshore shareholders.

This integrated approach ensured:

  • One Risk Narrative: The “Local” and “International” findings were aligned, not contradictory.

  • Speed of Execution: Information flowed directly between the legal teams, bypassing the usual friction of cross-border deals.

  • Unified Reporting: Investors received a cohesive legal picture, accelerating their decision-making process.

Why This Matters

This transaction reinforces Consortio’s position as a go-to advisor for Digital Economy Investments. It demonstrates that we understand the specific nuances of tech platforms—from data privacy to digital consumer rights—and can integrate that local expertise into a global investment structure.