Swvl Inc. has wrapped up pre-funding of $35.5 million of PIPE to fast track growth with the investors, including Agility and Chimera Abu Dhabi, supporting the Company’s proposed business combination with Queens Gambit Growth Capital.
Swvl is pursuing a multi-year growth strategy to generate around $1 billion in yearly gross revenue and expand to more than 30 cities in more than 20 countries by 2025. Swvl expects to use the cash from the pre-funding deal to accelerate its expansion activities and continue investing in its proprietary technology platform.
Mostafa Kandil, Swvl Founder and CEO, said, “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.”
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.”
The investors who pre-funded the PIPE purchased Swvl exchangeable notes in accordance with the agreed subscription agreements. Each exchangeable note will be immediately exchanged for shares of the combined Company at an exchange price of US$8.50 per share when Swvl’s business combination with Queen’s Gambit Growth Capital closes. The amount of each note investor’s subscription in the PIPE was decreased by the buying price of such investor’s exchangeable note when the exchangeable notes were issued.
Youssef Salem, Swvl 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 the signing of a formal deal to acquire a majority interest in Shotl, a Barcelona-based mass transportation platform that partners with governments and enterprises to provide on-demand bus and van services throughout Europe, Asia, and Latin America. Swvl’s debut into Europe will be accelerated by more than a year as a result of the acquisition. Swvl also plans to use the PIPE funds to accelerate the deployment of its innovative mass transit solutions in other emerging market cities spanning Africa, Asia, and the Middle East.
