Dubai’s Swvl raises $35.5mn to fuel its global expansion plans

By Amirtha P S, Desk Reporter
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Dubai-based mass transit and shared mobility services provider, Swvl has raised $35.5 million in line with its proposed business combination with Queens Gambit Growth Capital, a blank cheque company.

Kuwait’s Agility and Chimera Abu Dhabi are among global investors that are part of the latest funding round, which will accelerate Swvl’s expansion in current and new geographies, including markets in Europe, Latin America, and the Asia-Pacific regions.

Strategic and financial investors have pre-funded a significant portion of the $100 million PIPE (private investment in public entity) deal, which is part of Swvl’s proposed $1.5 billion mergers with the blank-cheque company and its listing, the company said.

Swvl is executing a comprehensive growth strategy with the goal of realizing approximately $1 billion of annual gross revenue and expansion to more than 30 cities in more than 20 countries by 2025. 

Mostafa Kandil
Mostafa Kandil
Co-Founder & CEO

“We greatly appreciate that many highly regarded global investors have clear confidence in our growth strategy. With this immediate infusion of growth capital, we are even better positioned to bring our transformative daily commuting, inter-city retail travel and TaaS offerings to new markets. Each and every day we are advancing our mission to reinvent the $1 trillion mass transit industry with tech-enabled solutions.”

Mr. Tarek Sultan, Vice Chairman of Agility, added, “We have already witnessed the disruptive power of Swvl’s parallel mass transit platform in many of our largest markets. After getting to know their team better over the past few months, we have full confidence in their ability to solve complex mobility challenges. We are excited to accelerate Swvl’s global expansion with this funding, and look forward to exploring compelling opportunities for strategic and operational collaboration moving forward.”

Investors that have pre-funded the PIPIE have received exchangeable notes of Swvl, which will be automatically exchanged for shares of the combined company at an exchange price of $8.50 per share, once it merges with Queen’s Gambit Growth Capital.

Mr. Youssef Salem, Swvl’s CFO, said, “This pre-funding creates significant value for all Swvl’s shareholders as Swvl deploys this capital into strategic and accretive expansions with a high return on capital and upside to Swvl’s current business plan.”

Swvl recently announced that it has entered into a definitive agreement to acquire a controlling interest in Shotl, a Barcelona-based mass transit platform that provides on-demand bus and van services. The acquisition will facilitate Swvl’s entry into Europe more than one year ahead of schedule. 

Further, Swvl intends to utilize the pre-funded PIPE proceeds to expedite the availability of its transformative mass transit solutions in other emerging market cities across Africa, Asia and the Middle East.

Related: Dubai-based car subscription startup Invygo secures $1.9mn amid expansion plan