Led by Mostafa Kandil, SWVL raises $21.5-million PIPE funding ahead of U.S. listing

SWVL, a global tech startup led by tech entrepreneur Mostafa Kandil, has agreed to raise a further $21.5 million in private investment in public equity (PIPE) from new investors, including the European Bank for Reconstruction and Development.

The transaction is part of a proposed business combination with Queen’s Gambit Growth Capital, a special purpose acquisition company (SPAC) with a 100-percent female-led management team and board.

The new investors will join a distinguished group of global strategic and financial investors providing fully committed PIPE financing for the transaction, including Agility, Luxor Capital Group, Chimera and Zain.

Kandil who founded SWVL with two old friends from school, Ahmed Sabbah and Mahmoud Nouh, revealed that the $21.5-million investment was a “clear vote of confidence” in SWVL’s growth strategy and future as a public company.

“With this additional funding, we are confident in Swvl’s ability to bring transformative technology and services to new markets, transforming a $1-trillion global mass transit industry in desperate need of effective solutions. We are excited to complete the business combination, go public, and continue to create tremendous value for all stakeholders,” he said.

Victoria Grace, founder and CEO of Queen’s Gambit Growth Capital, commented on the transaction, stating that, since the proposed business combination with SWVL was announced, the startup has gone far beyond every aspect of its business plan, with plans to expand into new markets.

She went on to say that the additional capital injection will put SWVL on track to create value for its shareholders by capitalizing on opportunities in its operating environments.

When the planned listing is completed, the startup will be the first $1-billion-plus unicorn from the Middle East to list on Nasdaq, as well as the only tech-enabled mass transit solutions company to list on any stock exchange, with an implied, fully diluted equity value of $1.5 billion.

Kandil founded SWVL in 2017 to address traffic congestion in Cairo, Egypt’s capital city. It has since grown into an industry leader in mass transit across 10 cities in Egypt, Kenya, Pakistan, the UAE, Saudi Arabia and Jordan.

SWVL’s gross revenue and markets have expanded rapidly over time, with more than 1.4 million riders booking more than 46 million rides with thousands of drivers on its platform to date.