EGYPT – Egyptian mobility company Swvl has raised an additional US$21.5 million in private investment in public equity (PIPE) deal as part of its proposed business combination with Queen’s Gambit, ahead of its future listing on the Nasdaq exchange.
The last PIPE funding was participated in by new investors including the European Bank for Reconstruction and Development (EBRD).
The funding activates the combination agreement with Queens Gambit, forming a combined public company named Swvl Holding Corp, and is expected to be listed on the Nasdaq exchange at a valuation of around US$1.5 billion.
“Armed with additional funding certainty, we are confident in Swvl’s ability to bring its transformative technology and services to new markets, in turn transforming a US$1 trillion global mass transit industry that is sorely in need of effective solutions,” said Mostafa Kandil.
Founded by Mostafa Kandil in 2017, Swvl is a mass-transit system that enables riders heading in the same direction to share a ride in a van or bus.
The start-up’s proprietary mobility solutions are helping to solve mass transit supply and demand challenges in emerging markets, empowering underserved communities with transportation solutions that are dependable, convenient, safe, and affordable.
Swvl is among the best-funded in Africa and is now active across 10 cities in Egypt, Kenya, Pakistan, the United Arab Emirates (UAE), Saudi Arabia, and Jordan.
The company’s gross revenue and markets have grown rapidly, with more than 1.4 million riders booking more than 46 million rides to date with thousands of drivers on its platform.
Kandil said the investment was a “clear vote of confidence” in Swvl’s growth strategy and future as a public company.
Swvl team has gone beyond every element of its business plan, with strong execution across its existing markets, while pursuing additional market opportunities in new geographies.
“The additional capital is expected to allow Swvl to continue to create significant value for all stakeholders,” said Victoria Grace, founder, and CEO of Queen’s Gambit Growth Capital.
The investment terms are substantially similar to those in the initial PIPE financing announced in conjunction with Swvl’s proposed business combination transaction with Queen’s Gambit in July.
The additional investment increases the aggregate amount of expected PIPE proceeds to US$121.5 million, providing additional capital to fund Swvl’s expansion efforts and further investments in its proprietary technology platform.
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