Concordium, a leading blockchain technology company, and Swvl, Inc. (“Swvl”), a Egyptian provider of mass transit and shared mobility solutions, have announced a strategic agreement to construct revolutionary next generation mass transport systems for the first time.

“Swvl set out to create the mass transit system of the future, for the cities of the future. Our partnership with Concordium will improve the real-time capabilities of our offerings. We will be even better positioned to capitalize on fast-changing customer demands, resulting in quicker and more flexible commuting experiences,” Mostafa Kandil, Swvl Founder and CEO, said.

Swvl, now based in Dubai with an implied, fully diluted equity value of about $1.5 billion offers a semi-private alternative to public transportation for persons who cannot afford or access private solutions.

Read also:Telecoms Giant Zain Launches New VC Firm, Zain Ventures, Invests In SWVL And Pipe

Swvl announced the signing of a formal agreement for a business combination with Queen’s Gambit Growth Capital (“Queen’s Gambit”) (NASDAQ: GMBT), the first special purpose acquisition company run by women, on July 28, 2021.

Swvl makes transportation safer, more efficient, and ecologically responsible, while also making it accessible and cheap to everybody. Customers schedule rides using an easy-to-use app with a variety of payment choices, and they gain access to high-quality private buses and vans that follow fixed and semi-fixed routes, stations, times, and pricing.

Here Is How The Partnership Will Work

Concordium will provide a blockchain-based technological platform with the goal of improving Swvl’s customers’ mass transit travel experience. The platform is designed to aid in the resolution of the highly complex logistical difficulties inherent in mass transportation, while also boosting Swvl’s efforts toward decarbonization and smart, green mobility.

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Concordium’s platform is designed to give the following primary benefits, among others:

• Natural ebbs and flows in consumers’ travel needs may be detected more quickly and accurately, and fed into evolving travel routes via Swvl’s dynamic routing capabilities, making trips faster and less expensive.

• Swvl’s technology enables the development of interactive relationships with its customers through greater driver monitoring and performance tracking, as well as increased efficiency and quality of service — making Swvl trips even safer and more reliable.

• Driver pay can also be better tied to performance, motivating drivers to give the best service possible.

“Mass transit systems are inherently flawed, with inefficiencies that create significant barriers and cause daily commuting to be a struggle. Combining Concordium’s differentiated blockchain technology with Swvl’s cutting-edge mobility platform provides a seamless commuting experience that will change mass transit on a global scale,” Lone Fonss Schroder, Concordium’s chief executive, said. 

Swvl blockchain Swvl blockchain

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

Swvl, an Egyptian ride-sharing startup based in Dubai, has announced that it is going public through a merger with a special purpose acquisition company (SPAC). According to The Wall Street Journal, the mobility company is merging with Queen’s Gambit Growth Capital, a SPAC founded by a group of female CEOs early this year (which claims to be the first women-led SPAC). Victoria Grace, the company’s CEO, is the founder of Colle Capital, a venture capital firm based in New York.

“We have succeeded in executing our business plan in some of the most challenging emerging markets, where inefficiencies in infrastructure and related mass-transit systems represent a universal problem, and have now reached a critical inflection point where we are ready to share our expertise and technology with the rest of the world,” Mostafa Kandil, the co-founder and CEO of Swvl, said.

“Queen’s Gambit is an ideal partner, who shares our core values and is committed to helping accelerate Swvl’s long-term growth plans. With their partnership, as a public company, we will expand our daily commuting offerings and enterprise TaaS services that remove barriers to seamless mobility for the populations that need it most. In doing so, we will create even greater value for all stakeholders and continue innovating best-in-class technology solutions that improve the universal, daily struggle of mobility for so many,” he added.

Read also:Bigger Market Share For SWVL In Kenya As It Partners Matatus For Long Distance Trips

Here Is What You Need To Know

• SWVL and Queen’s Gambit Growth Capital have signed a formal agreement for a business combination, according to the announcement, which would result in Swvl becoming a publicly traded company on NASDAQ after the proposed deal is completed. The company will trade under the ticker code ‘SWVL.’

• Swvl will be the second Middle Eastern business to go public using the SPAC route. Anghami, an Abu Dhabi-based music streaming platform, stated earlier this year that it intends to go public by merging with Vistas Media Acquisition Company, a SPAC. 

• A SPAC, sometimes known as a blank-cheque corporation, is founded to obtain funds through an IPO in order to purchase and publicize an existing company. It will be the first Egyptian-born technology company to list on NASDAQ (or outside Egypt), as well as the second Egyptian technology company overall (Fawry being the first one).

• According to the report, Queen’s Gambit Growth Capital raised $300 million when it was founded in January and another $45 million afterwards through underwriters’ overallotment option. Swvl’s purchase will also involve a $100 million PIPE (private investment in a public firm) from a consortium of investors including Agility, Luxor Capital, and Zain Group. Swvl will now have $445 million in additional capital to invest in its growth and expansion.

“When forming Queen’s Gambit, I was squarely focused on assembling a team of highly successful and strategically-minded women with unparalleled global relationships, to identify and then grow a disruptive platform that solves complex challenges and empowers underserved populations. In Swvl, we have found each of those things and more. Having established a leadership position in key emerging markets, we believe Swvl is ready to capitalize on a truly global market opportunity,” Victoria Grace, Queen’s Gambit Founder & Chief Executive Officer, said. 

Read also:With Over 40k Taxis On board, 1-Year-Old Ivorian Mobility Startup Moja Ride, Partners O-City To Conquer West Africa

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.

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.

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.

Swvl ride Swvl ride Swvl ride

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

Egypt’s bus-hailing startup, SWVL, which is already present in Kenya, Pakistan as well as Egypt, has launched operations in Riyadh, Saudi Arabia, its fourth market since it was founded in 2017.

The Egyptian startup is seen as largely secretive about its expansion plans. In early 2018, when it raised tens of millions of dollars in its Series B-1, the startup said that it would use the money to expand to Southeast Asia, starting with Manila in 2019 Q1 but instead expanded to Kenya. In June 2019, the startup also said that it was planning to expand to Nigeria (by mid-July) but later launched operations in Lahore, Pakistan. 

In Riyadh, Saudi Arabia’s capital and main financial hub with a population of close to 8 million, Swvl will join forces with other competitors including Uber, Careem, My Taxi, Jahz and Taxi Watani, among others. 

Read also:Uber to License its Ride-Hailing Software to Three More Public Transit Agencies

In 2018, the Saudi Arabia’s Public Transport Authority (PTA) said there were 20 ride-hailing applications already licensed to run in the kingdom, with government further issuing statements that ride-hailing driving remains exclusively reserved for the country’s nationals. 

In 2017, the country passed a royal decree allowing women to drive in the kingdom, a move expected to have a major impact on car transport businesses operating in Saudi Arabia.

SWVL is different from Careem or Uber in that instead of using private cars, the startup confronts the public transport system as whole by allowing commuters to book seats on its growing network of “high-quality” buses (owned and operated by third-parties). SWVL operates bus lines on fixed routes with customers boarding the buses from specific pick-up spots to be dropped at pre-defined (virtual) stations.

Saudi Arabia’s Expansion Further Confirms The Startup Is Not Afraid Of Competition

Swvl’s bold inroads into crowded ride-hailing markets have been one of its greatest strengths from day one. 

For instance, although the startup is the first riding app to offer bus services in Egypt, giant transportation startups Careem and Uber had previously offered their own bus services. 

Read also Bigger Market Share For SWVL In Kenya As It Partners Matatus For Long Distance Trips

In 2019, Careem announced that it was killing its bus-hailing service Careem Bus. The decision by Careem did not come as a surprise as Uber had in March, 2019 announced a $3.1 billion purchase of the Dubai-based competitor. The Swvl-like service had launched in December 2018 and was available in Egypt, Saudi & Pakistan. Careem’s parent company Uber, however, continues to operate Uber Bus in Cairo.

Mostafa Kandil, Egyptian CEO and founder of Swvl, has however, consistently noted that the joining of Uber and Careem to the industry has not influenced Swvl’s growth, asserting that Swvl has, instead, witnessed remarkable development since the two competitive players launched.

In 2019, the startup was valued at US$157 million, becoming the second Egyptian company after Fawry to reach these figures.

A Look At What SWVL Does

• Founded in 2017 by Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh, Swvl connects commuters with private buses, allowing them to reserve seats on these buses and pay the fare through company’s mobile app. The buses available on Swvl operate on fixed routes (or lines) and are presently available in over 200 routes including in major cities like Cairo, Lahore, Alexandria, and Nairobi.

• The startup launched its bus sharing services in Nairobi early 2019 after raising more than US$30 million in 2018. 

• Although bus-hailing operations have been greatly affected by the coronavirus pandemic, the SWVL app which is available for both Android and iOS users has registered over a million customers who frequently use its services.

• SWVL also most 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. The startup 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.

SWVL Saudi Arabia SWVL Saudi Arabia

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