Egyptian Startup SWVL To Cut 32% Of Its Staff And Turn Profitable In 2023

Swvl Holdings, a global provider of transformative tech-enabled mass transit solutions, has announced that it is implementing a portfolio optimization program to improve efficiency and reduce central costs in order to accelerate its path to profitability and achieve cash flow positive status by 2023. Swvl’s Transport as a Service (TaaS) business, through which it provides technology-enabled transportation for corporates, schools, universities, industrial facilities, airlines, and other institutional clients via its asset-light marketplace, and Software as a Service (SaaS) business, through which it licenses its proprietary technology to transit agencies, bus operators, and other high-capacity vehicle fleet owners and users, are both rapidly growing. They now have over 500 live accounts across four continents, with over $5 million in monthly revenue.

Mostafa Kandil, Egyptian CEO and founder of Swvl
Mostafa Kandil, Egyptian CEO and founder of Swvl

The following will be included in the Company’s portfolio optimization program:
TaaS and SaaS business expansion, both organic and inorganic, throughout all geographies of operations, including Germany, Spain, Italy, Switzerland, Turkey, Japan, Argentina, Saudi Arabia, United Arab Emirates, Jordan, Egypt, Kenya, and Pakistan; Focus of the Business to Consumer (B2C) business on Egypt and Pakistan, the Company’s current greatest B2C revenue contribution and profitability markets; Optimization of B2C route networks in specific cities, as well as staffing and operating expenses Investment in developing the Company’s proprietary technological stack will be maintained.

Read also Egypt’s SWVL Acquires UK’s Largest Smart Bus Platform Zeelo For $100M

The recent acquisitions of TaaS and SaaS companies Viapool, Volt Lines, and Shotl, as well as the imminent acquisition of door2door, all contribute to this expansion.

Read also SWVL Buys German On-demand Mobility Software Startup door2door

The company aims to downsize its workforce by around 32%. Such reductions will target roles that have been automated as a result of investments in the Company’s engineering, product, and support divisions. Swvl intends to provide monetary, non-monetary, and job placement assistance to assist in the transition of certain of its employees to new responsibilities. Swvl’s management now anticipates the company to be cash-flow positive in 2023 as a result of the portfolio optimization program.

Swvl staff Swvl staff

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. 
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh