Swvl, an Egyptian ride-hailing startup, will merge with US SPAC Queen’s Gambit Growth Capital to offer 35 percent of its shares on the Nasdaq stock exchange.
According to CEO Mostafa Kandil, the Initial Public Offering would take place by the end of January 2022.
Swvl Holdings Corp. plans to expand into the Latin American and European markets in the coming year, Kandil added, by supplying governments with the most up-to-date smart transportation solutions.
A Look At What SWVL Does
Swvl, which was founded in 2017 by Mostafa Kandil, Mahmoud Nouh, and Ahmed Sabbah, began as a bus-hailing service in Egypt, allowing users to travel inside a city by booking seats on fixed-route buses. Later, the service was expanded to Kenya and Pakistan, and the company’s headquarters were relocated to Dubai. In several markets, the company now offers intercity travel, car-based ride-sharing, and corporate services. Swvl produced $26 million in annual gross revenue, according to its SPAC presentation, with a negative EBITDA of $29 million (which means the company lost $29 million). It stated that by 2025, it hopes to increase its yearly gross revenue to $1 billion.
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Swvl services both consumers and businesses in its major countries of Egypt, Kenya, and Pakistan through Daily, Travel, and Business solutions, however it solely serves businesses in some of the new regions it has just entered, such as Jordan and Saudi Arabia. Swvl’s transportation-as-a-service business offering allows schools, universities, and corporations to create customized transportation alternatives for their students or employees using Swvl’s software and fleet. In the next five years, the company wants to be in 20 countries on five continents.
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The Cairo-based business has raised over $100 million to date, including an unannounced fundraising round earlier this year. Vostok New Ventures Global, Beco Capital, Raed Ventures, Sawari Ventures, MSA Capital, Silicon Badia, and Oman Technology Fund are among its prior investors. Its most recent public investment round was a $42 million Series B-2 round in 2019, following which it surreptitiously raised another $20 million in early 2020.
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Mostafa had previously worked as a market launcher for the Middle East’s largest ride-hailing company. Swvl co-founders Mahmoud Nouh (COO) and Ahmed Sabbah (CTO) both departed the company to start their own businesses in October 2019 and March 2021, respectively.
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Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer