Swvl - Egypt Ride-sharing Company Intends To Go Public Through A $1.5 Billion SPAC Merger
Swvl, Egypt's ride-sharing company intends to go public through a $1.5 billion SPAC merger
Swvl, a ride-sharing company based in Cairo and Dubai, plans to go public through a merger with special purpose acquisition company Queen's Gambit Growth Capital, Swvl announced Tuesday. Swvl will be valued at approximately $1.5 billion as a result of the transaction.
Mostafa Kandil, Mahmoud Nouh, and Ahmed Sabbah founded Swvl in 2017. The trio founded the company in Egypt as a bus hailing service and expanded it to other emerging markets with fragmented public transportation.
Its services, primarily bus hailing, enable users to travel within the state by booking seats on fixed-route buses. This is more affordable for residents in these markets than single-rider options and contributes to emissions reductions (Swvl claims it has prevented over 240 million pounds of carbon emission since inception).
Swvl expanded beyond Egypt following its initial launch in Kenya, Pakistan, Jordan, and Saudi Arabia. Additionally, as part of its strategy to become a global company, the company relocated its headquarters to Dubai.
Swvl's offerings have grown to include more than just bus-hailing services. Now, the company offers intercity rides, car ride-sharing and corporate services in the ten cities in Africa and the Middle East where it operates.
Queen's Gambit, the deal's women-led SPAC, raised $300 million in January and added $45 million via an underwriters' overallotment option focused on clean energy, healthcare, and mobility startups.
Additionally, the statement indicates that a group of investors — Agility, Luxor Capital, and Zain Group — will contribute $100 million via a private investment in public equity, or PIPE.
Swvl has raised over $170 million
Swvl has raised over $170 million, according to Crunchbase. Swvl is one of the most venture-backed startups on the African continent. The company has previously been predicted to achieve unicorn status and will do so following the completion of this SPAC merger.
SWVL is an apt ticker symbol for the company. With the listing, it will become the first Egyptian startup to go public outside of Egypt, and the second after Fawry. Additionally, it will make the mobility company the largest African unicorn to list on a US-listed exchange, surpassing Jumia's $1.1 billion NYSE debut. Swvl joins music-streaming platform Anghami in the Middle East as the second startup to go public via a SPAC merger.
Swvl reported annual gross revenue of $26 million in 2020 and expects to grow to $79 million this year and $1 billion by 2025 after expanding to 20 countries across five continents.
Victoria Grace, founder and CEO of Queen's Gambit, stated in a statement that Swvl fit the profile of what she was looking for: "a disruptive platform that solves complex challenges and empowers underserved populations."
“With a leadership position in key emerging markets, we believe Swvl is well positioned to capitalize on a truly global market opportunity,” she added.
According to TechCrunch, SPACs avoided African startups in May for a variety of reasons, including a lack of global appeal, private capital, and market satisfaction. According to Grace's comments, Swvl possesses that global appeal and is prepared to enter the public market despite its four-year existence.
