Egyptian rideshare company Swvl plans to go public in $ 1.5B SPAC merger – TechCrunch


Swvl, the Cairo and Dubai-based rideshare company, plans to go public in a merger with special-purpose acquisition company Queen’s Gambit Growth Capital. Swvl said Tuesday. The deal will see Swvl valued at roughly $ 1.5 billion.

Swvl was found by Mostafa Kandil, Mahmoud Nouh and Ahmed Sabbah in 2017. The trio started the company as a bus service in Egypt and other ridesharing services in emerging markets with fragmented public transport..

Its services, mainly bus service, allows users to travel within the state by reserving seats on buses that run a fixed route. This is user friendly for residents of these markets compared to single passenger options and helps reduce emissions (Swvl claims it has avoided more than 240 million pounds of carbon emissions since its inception).

After its launch in Egypt, Swvl expanded to Kenya, Pakistan, Jordan, and Saudi Arabia. The company also moved its headquarters to Dubai as part of its strategy to become a global company.

Swvl’s offerings have expanded beyond bus stop services. Now the company offers city-to-city travel, carpooling and corporate services in the 10 cities it operates in in Africa and the Middle East..

Queen’s Gambit, the female-led SPAC in charge of the deal, high $ 300 million in January and added $ 45 million through a subscriber over-allotment option that targets startups in the clean energy, healthcare and mobility sectors..

The statement It also mentions a group of investors – Agility, Luxor Capital and Zain Group – who will contribute $ 100 million through a private investment in public equity, or PIPE.

By Crunchbase, Swvl has raised more than $ 170 million. From an African perspective, Swvl presents itself as one of the most company-supported startups on the continent. The company have been promoted achieve unicorn status in the past and will do so when this merger SPAC it’s complete.

The company will properly trade under the symbol SWVL.. The list will make it the first Egyptian startup to go public outside Egypt and the second to do so, after Fawry. It will also make the mobility company the largest African unicorn debut on any US-listed exchange, topping Jumia’s close by $ 1.1 billion on the NYSE.

Swvl had annual gross revenue of $ 26 million in 2020, according to the statement, and the company expects its annual gross revenue to grow to $ 79 million this year and $ 1 billion by 2025 after expanding to 20 countries.

On why Queen’s Gambit chose Swvl for this deal, Victoria Grace, founder and CEO, said in a statement that the company fit the profile of what she was looking for: “a disruptive platform that solves complex challenges and empowers underserved populations.. “

“Having established a leadership position in key emerging markets, We believe Swvl is ready to capitalize on a Really global market opportunity ”, he added..

In May, TechCrunch wrote that the SPACs did not target African startups to various reasons, including lack of global attractiveness and satisfaction of private capital. Judging from Grace’s comments, Swvl has that global appeal and is ready to break into the public market despite being in operation for only four years.


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