Swvl, an Egyptian mobility firm, has secured an additional $21.5 million in private investment in public equity (PIPE) deal as part of its proposed business combination with Queen’s Gambit, in preparation for its prospective Nasdaq listing.
Swvl is a mass-transit system founded by Mostafa Kandil in 2017 that allows users traveling in the same direction to share a van or bus journey. The company’s innovative mobility solutions are assisting in the resolution of mass transit supply and demand difficulties in emerging regions, providing dependable, convenient, safe, and cheap transportation to underserved populations.
The company is one of Africa’s best-funded, and it already operates in ten cities throughout Egypt, Kenya, Pakistan, the United Arab Emirates (UAE), Saudi Arabia, and Jordan. Swvl’s total income and market share have exploded, with over 1.4 million users booking over 46 million trips on its platform and thousands of drivers.
Swvl has already reached agreements with new partners for an additional $21.5 million in PIPE finance, including the European Bank for Reconstruction and Development (EBRD). The investment, according to Kandil, is a “clear vote of confidence” in Swvl’s development plan and future as a publicly traded business.
“We continue to demonstrate significant momentum towards our strategic goals. 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. We look forward to completing the business combination, entering the public market, and continuing to create tremendous value for all stakeholders,” he said.
Since announcing the proposed business combination with Swvl, Victoria Grace, founder, and CEO of Queen’s Gambit Growth Capital, said the Swvl team had gone well beyond every element of its business plan, with strong execution across its existing markets and the pursuit of additional attractive market opportunities in new geographies.
“The additional capital is expected to allow Swvl to continue to create significant value for all stakeholders. Swvl continues to be uniquely positioned from a technological, financial, and operational basis to execute on this tremendous market opportunity,” she said.
The conditions of the investment are quite similar to those of the original PIPE financing disclosed in July in conjunction with Swvl’s proposed business combination with Queen’s Gambit. Swvl’s estimated PIPE proceeds have increased to US $121.5 million as a result of the new investment, providing extra money to fuel its expansion ambitions and future investments in its unique technology platform.
