Swvl Holdings Corp. (NASDAQ: SWVL), a global supplier of disruptive technology-enabled mass transit solutions, has announced the completion of a formal agreement to purchase Zeelo, the UK’s largest smart bus platform and technology scale-up by bookings, for US$100 million. Joining forces with Zeelo builds on Swvl’s recent successful acquisitions of Viapool and Shotl, as well as previously announced acquisitions of Volt Lines and door2door, and provides a springboard for rapidly establishing and expanding business operations in three strategic developed markets, including the UK, South Africa, and the United States, with Zeelo’s seasoned team of over 160 employees globally, including 29 software engineers based in Zeelo’s R&D hub in Barcelona.
“Swvl was founded on the belief that accessible transportation is essential to unlocking economic opportunity. Swvl and Zeelo share a vision and mission to provide reliable transportation that gets riders where they need to go in an affordable, safe, and environmentally-friendly manner. With an impressive suite of turnkey TaaS and SaaS solutions and an established footprint in the United Kingdom, South Africa, and the United States, Zeelo rapidly advances our leading market position as a provider of technology-enabled mass transit solutions on a global scale,” Mostafa Kandil, Swvl Founder and CEO, said.
In line with Swvl’s objective, Zeelo has a well-established track record of accelerating the transition from single-occupancy vehicles to zero-emission mass transit and deploying mobility services to link more people to jobs and educational opportunities. The transaction is scheduled to close in May 2022.
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Transaction Highlightsi:
The transaction provides Swvl enhanced scale, strengthens its capabilities and creates substantial value for shareholders:
- Drives continued global expansion: Deepens penetration in the attractive UK market and provides an entry point into the US and South Africa.
- Offers a complementary suite of B2B mobility solutions with proven ability to reduce overall costs for organizations:
- Leading fully managed TaaS platform connects riders via their employers and schools to operators and drivers
- SaaS licensing platform enables third party fleet operators to manage own programs
- Asset light-delivery model by partnering with existing fleet partners, including over 200 bus operators in the UK and the US.
- Provides access to a blue-chip enterprise customer base:
- Contracts established with major employers and schools across >100 sites
- Proven track record of expanding customer deployments with multi-site customers already in place
Sam Ryan, Zeelo Founder and CEO, said, “Swvl is revolutionizing the mass transit industry and we are thrilled to join forces with them on this next phase of Zeelo’s journey to firmly establish smart bus transport as the best-in-class shared mobility solution that takes account of all income levels and the needs of ordinary, every-day travelers. Bus transport done well with tech can take us beyond our dependency on cars and taxis which are not suitable for commutes from non-urban areas. We look forward to bringing Swvl insights from Zeelo’s strategic pivot during the global pandemic and we’ve been impressed by Swvl’s fast growth in challenging markets. We are excited to leverage their global experience as we embark on a shared journey to develop safe, affordable, and low emission mass transportation options, and expand economic opportunity for the people who need it most through our mobility solution. Especially shift workers, professionals and students living in transport-poor areas in the developed markets.”
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Youssef Salem, Swvl CFO, said, “The acquisition of Zeelo offers Swvl a superb entry point into the US and South Africa, extends our position in the UK, and provides a complementary suite of new mobility products. Combined with our past acquisitions and announced acquisitions, today’s announcement further demonstrates our ability to utilize our growth capital and public currency to pursue organic and inorganic strategic initiatives. We look forward to capitalizing on the numerous opportunities provided by this transaction to advance our market position as a provider of technology-enabled mass transit solutions on a global scale.”
Zeelo is a digital firm with few assets that modernizes daily bus travels to meet the needs of frontline workers and students through B2B contracts with organizations and family-run bus operator networks. Zeelo is headquartered in San Francisco, California. Businesses, employment agencies, independent schools, and colleges throughout the United Kingdom, South Africa, and the United States that require a private transportation solution for those who live in areas with limited transportation options rely on Zeelo’s system for assistance. This comprises a driving accreditation school, leased fleets, and proprietary technology such as a SaaS platform and several customer apps, which take advantage of sophisticated GPS route optimization and ride-sharing software, among other things.
A Look At What SWVL Does
In more than 115 cities across 20 countries and four continents, Swvl is a global provider of innovative technology-enabled mass transit solutions, including intercity, intracity, business-to-business (B2B) and business-to-government (B2G) transportation. Individuals who are unable to access or pay private transportation can benefit from the Company’s platform, which offers complimentary semi-private alternatives to public transit. Swvl’s parallel mass transit systems enable people to go where they want, when they want, every day, making mobility safer, more efficient, more accessible, and more ecologically friendly. Customers can book their journeys through a simple-to-use proprietary software that offers a variety of payment choices as well as access to high-quality private buses and vans around the clock.
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Swvl was co-founded by Mostafa Kandil, who was previously responsible for the launch of Carmudi in the Philippines, which grew to become the country’s largest car classifieds platform in less than six months. After then, he worked as the Director of Operations for Rocket Internet. Careem, a ride-sharing business and the first unicorn in the Middle East, hired Kandil in 2016, and he has since expanded its services to numerous other markets.
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