728 x 90

Dubai’s Swvl secures $35.5m pre-funding to accelerate growth plan

Dubai’s Swvl secures $35.5m pre-funding to accelerate growth plan

Dubai-based transport provider Swvl has announced that several investors have completed the pre-funding of $35.5 million of subscriptions raised in connection with its proposed business combination with Queens Gambit Growth Capital. Investors in the private investment in public equity (PIPE) subscriptions included Agility and Chimera Abu Dhabi, said Swvl which aims to realise $1 billion

Dubai-based transport provider Swvl has announced that several investors have completed the pre-funding of $35.5 million of subscriptions raised in connection with its proposed business combination with Queens Gambit Growth Capital.

Investors in the private investment in public equity (PIPE) subscriptions included Agility and Chimera Abu Dhabi, said Swvl which aims to realise $1 billion of annual gross revenue and expansion to more than 30 cities in more than 20 countries by 2025.

Dubai’s Swvl to expand into Europe, Latin America, and Asia-Pacific via Shotl acquisition

Acquisition will accelerate Swvl’s entry into Europe a year ahead of schedule and will more than double its footprint in 10 additional countries

The proceeds raised through the pre-funding transaction are expected to accelerate those expansion efforts and to further Swvl’s investment in its proprietary technology platform, the company said in a statement.

Mostafa Kandil (pictured below), 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.”

In accordance with the executed subscription agreements, the investors that pre-funded the PIPE have purchased exchangeable notes of Swvl.

At the closing of Swvl’s business combination with Queen’s Gambit Growth Capital, each exchangeable note will be automatically exchanged for shares of the combined company at an exchange price of $8.50 per share.

Upon the issuance of the exchangeable notes, the amount of each note investor’s subscription in the PIPE was reduced by the purchase price of such investor’s exchangeable note.

Dubai’s Swvl to expand into Europe, Latin America, and Asia-Pacific via Shotl acquisition

Acquisition will accelerate Swvl’s entry into Europe a year ahead of schedule and will more than double its footprint in 10 additional countries

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 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 partners with municipalities and corporations to provide on-demand bus and van services.

The acquisition will facilitate Swvl’s entry into Europe more than one year ahead of schedule while the company said it intends to utilise the pre-funded PIPE proceeds to expedite the availability of its mass transit solutions in other emerging market cities across Africa, Asia and the Middle East.

Mo
ADMINISTRATOR
PROFILE

Posts Carousel

Latest Posts

Top Authors

  • Mo
    ADMINISTRATOR

Most Commented

Featured Videos