Swvl announced on Tuesday that it plans to go public as part of a merger with special acquisition company Queen’s Gambit Growth Capital. The Cairo and Dubai-based travel-sharing company is involved in the deal, which is worth approximately $ 1.5 billion.
Swvl was founded in 2017 by three entrepreneurs – Mostafa Kandil, Mahmoud Noah and Ahmed Saba. Three of them started their businesses as bus services in Egypt and other ride-sharing services in emerging markets where public transport is fragmented.
Specifically, through the bus-hailing service, customers can travel to different states by booking seats on fixed-route buses. This is convenient for the residents of this market-segment.
Swvl started in Egypt and spread to Kenya, Pakistan, Jordan and Saudi Arabia. As part of its strategy to become a global company, its headquarters are also moving to Dubai. The company currently provides inter-city rides, car ride-sharing and corporate services in 10 cities in Africa and the Middle East.
Queen’s Gambit, on the other hand, raised $ 300 million in January and added $ 45 million through an underwriters’ over-allotment option focusing on startups in clean energy, healthcare and mobility sectors. The statement also identified a group of investors (Agility, Luxor Capital and Zain Group) who will donate $ 100 million in Private Equity Investment (PIPE).
From an African perspective, Swvl is seen as one of the most supported startups on the African continent. It has been touted once as reaching unicorn status and will do so after the completion of the SPAC merger.
The company will operate under the ticker SWVL. The listing will see Swvl as the first Startup in Egypt to go public outside the country and the second to go public after Fawry. It will also be the largest African unicorn debut for a mobility company on the US public exchange, ahead of Jumia’s $ 1.1 billion debut on the NYSE. Swvl now joins Anghami, the music streaming platform who is currently at the top, in the Middle East, as the second startup in Africa to go public through a SPAC merger.
In 2020, Swvl’s annual gross revenue was $26 million and it is expected that this amount will grow to $79 million in 2021 and to $1 billion by 2025 after the company reaches 20 countries with expansion across five continents.
Victoria Grace, who is the founder and CEO of Queen’s Gambit made a statement that confirmed Swvl’s profile fits exactly 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 truly global market opportunity,” she added further in her statement.
