SWVL Holdings Corp, an Egyptian ride-hailing startup led by Egyptian tech tycoon Mostafa Kandil, has signed a definitive agreement to buy Volt Lines, a Turkish B2B and transport-as-a-service mobility platform, for about $40 million.
The transaction, which is expected to close in the second quarter of 2022 pending regulatory approval, will assist Swvl in expanding its corporate offerings while also gaining a foothold in Turkey as it moves to expand its B2C service, as well as adjacent transportation solutions, such as schools and factories.
The recent transaction comes nearly three months after the global tech startup raised $21.5 million in PIPE from new investors, including the European Bank for Reconstruction and Development.
Kandil, Swvl’s founder and CEO, said that with the acquisition of Volt Lines, Swvl will be positioned to deepen its presence in Europe as the company seeks to expand its enterprise client base and meet its growth objectives.
With the acquisition, Swvl will gain access to Volt Lines’ tech infrastructure, which includes a cost-effective alternative to public transportation or ride-hailing via its network of smart routed shared buses, as well as its more than 110 corporate client contracts, which include ICBC, MetLife, and AXA Insurance, upon completion of the $40-million deal.
The proposed transaction, Swvl’s fourth since August 2021, is part of the company’s strategic plan to expand its operations to 20 countries across five continents, including North America, by 2025.
Kandil who founded Swvl with two of his friends from school, Ahmed Sabbah and Mahmoud Nouh, revealed that the acquisition of Volt Lines would add $4.3 million in annualized revenue to the company’s balance sheet.
Kandil founded Swvl in 2017 to alleviate traffic congestion in Cairo, Egypt’s capital city. It has since grown into an industry leader in mass transit, serving ten cities in Egypt, Kenya, Pakistan, the United Arab Emirates, Saudi Arabia and Jordan.
Swvls gross revenue and markets have grown 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.