Egypt’s Swvl, a mass-transit system that enables riders heading in the same direction to share a ride in a van or bus, has raised US$42 million as it looks to expand into other parts of Africa, including Nigeria.
Its latest round of investment is the largest ever secured by an Egyptian tech startup, beating its own record, and is co-led by Vostok Ventures and BECO Capital. Also participating are Arzan VC, Autotech, Blustone, Endeavor Catalyst, MSA, OTF Jasoor Ventures, Sawari Ventures, and Property Finder chief executive officer (CEO) Michael Lahyani.
The funding will see Swvl continue to solidify its position as a leader in building tech-enabled public transportation. It already facilitates hundreds of thousands of rides each month, serving tens of thousands of customers on its network of more than 200 routes in Cairo and Alexandria in Egypt, and Nairobi in Kenya. Other African launches are planned, while Swvl is also launching an R&D facility in Berlin, Germany.
“The plan is to be in at least two or three more African cities by the end of the year,’’ Mostafa Kandil, the founder and chief executive officer, said. “Lagos, Nigeria, is most likely the next market.’’
Not Afraid Of Competition
Although Swvl is the first riding app to offer bus services in Egypt, giant transportation startups Careem and Uber have recently offered their own bus services.
Mostafa Kandil, Egyptian CEO and founder of Swvl, has however noted that the joining of Uber and Careem to the industry has not influenced Swvl’s growth asserting that they have witnessed remarkable development since the two competitive players have launched.
In 2018, the startup was valued at nearly US$100 million, becoming the second Egyptian company after Fawryto reaches these figures.
The startup has recently signed an agreement with Ford motor company to deploy more cars on the road. Ford Transit, which the startup intends to use is already the third best selling van of all times. SWVL is already in possession of about 100 Ford Transits. Hazem Taher, SWVL’s Head Marketing Manager, said the vans were ready to go and they’re excited to push them on SWVL’s route.
The startup launched its bus sharing services in Nairobi early this year after raising more than US$30 million in 2018 at a valuation of approximately US$100 million.
Founded in 2018 by Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh, Swvl is presently available in 200 routes between Cairo, Alexandria, and Nairobi.
To date, the app which is available for both Android and iOS users has registered over a million customers who frequently use their services.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.
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