Looking to profitability in 2024

Swvl is expanding to Europe and Latin America before the end of this year

The Swvl application uses the passenger's location and destination to determine the shortest possible flight time.

Reuters

Youssef Salem, the financial director of SWVL, which specializes in mass transit services, said that his company will expand its services before the end of this year to Europe and Latin America, and to Southeast Asia next year, as it plans to enter new activities and turn to profitability. over the next three years.”

Salem, (28 years), added that his company, whose shares are expected to be listed on the Nasdaq stock exchange, before the end of the year, is studying double listing on the Egyptian Stock Exchange, or a separate listing of its unit in Egypt in 2022-2023.

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, had previously praised the company and its founder, in a tweet on Twitter, saying: "Mustafa Qandil... a 28-year-old Arab youth... was able to build A company from Dubai worth more than one and a half billion dollars, it was listed today on the Nasdaq Stock Exchange. The (SWVL) company for smart solutions for mass transportation, which operates in many countries.. Congratulations, Mustafa.. Dubai will remain a platform for all Arab youth who aspire to globality.

With an implied and fully diluted equity value of about $1.5 billion, Dubai-based Swvl is expected to become the first more than $1 billion company in the Middle East to be listed on Nasdaq, as well as the only company based on Technology-backed mass transit solutions, listed on any stock exchange.

Salem indicated that Swvl will expand in new activities and investments related to its main services during 2023, including logistical activities and advertising, in addition to financial services, and that it aims to turn profitable in 2024 by achieving about 13 million dollars, after investments and operating expenses and more than 170 million dollars in 2025.

Founded in April 2017, Swvl is a mass bus transportation service in which passengers can book and pay fare via the company's mobile application.

Salem said: “We are working in 10 cities in six countries currently, and we aim to increase it to 30 cities in 20 countries by 2025, and we will expand before the end of the year in Western or Southern Europe, in Brazil or Mexico in Latin America, and in 2022 in Southeast Asia in the Philippines, Malaysia and Indonesia. ».

He added: "We have more than 5,000 buses, of which about 3,000 are in Egypt, and about 600 employees, including about 400 in Egypt, and we are currently carrying out more than three million trips per month, and we aim to reach the number of trips to two million trips per day in 2025, and more than 500 million trips annually." .

Swvl currently operates in 10 cities in Egypt, Saudi Arabia, Kenya, Pakistan, the UAE and Jordan.

The Swvl application uses the passenger's location and destination to determine the lowest possible trip time based on the nearest bus station that travels on specific routes.

Salem, whose company's capital is currently more than $100 million, and will rise to about $550 million by the end of the year, after merging with the American "Queens Gambit", a special purpose acquisition company, added that "Swvl" targets revenues of $79 million in this year, from about $100,000 when it was founded.

He added that the company expects to increase its revenues to more than 140 million dollars in 2022 and more than 400 million dollars in 2023, about 800 million dollars in 2024 and more than one billion dollars in 2025.

Swvl announced in July that it had signed a final agreement to merge with the American "Queens Gambit", to result in the merger of a company called "Swvl Holdings Corp.", which will be listed on the Nasdaq Stock Exchange, and the process is expected to be completed in the last quarter of this year.

The share of Mustafa Kandil, the founder of the company and his two partners, Egyptians Mahmoud Noah and Ahmed Sabah, will be about 15% of Swvl, after completing the merger with the American company, while the rest will go to about 100 investors, according to Salem.

Swvl is expected to become the first company worth over $1 billion in the region to be listed on Nasdaq.

• The company expects to increase its revenues to 140 million dollars in 2022, and 400 million dollars in 2023.

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