SWVL Holdings Corp, a global tech startup led by Egyptian entrepreneur Mostafa Kandil, has entered into a strategic partnership with Cairo-based Klax Ads.
SWVL, a leading provider of tech-enabled mass transit solutions, and Klax Ads will utilize their advanced technology and share revenues as they provide advertising content for each region, aiming to increase drivers’ income through targeted advertising, according to Mubasher.
The partnership is a win-win for both companies and their customers as the advanced technology used by both companies will help to increase the efficiency and effectiveness of their advertising efforts, while also providing SWVL drivers with a new source of income. This collaboration demonstrates the importance of technological innovation in the transportation industry and is likely to lead to more exciting developments in the future.
SWVL is a global provider of transformative tech-enabled mass transit solutions, operating in over 135 cities across 20 countries and offering intercity, intracity, B2B, and B2G transportation. The startup made history in April 2022 by becoming the first African firm to list on Nasdaq through a special purpose acquisition company (SPAC). In addition to Kandil, it was co-founded by Ahmed Sabbah, an Egyptian entrepreneur and the founder of Telda.
Under Kandil’s leadership, SWVL’s gross revenue and market share have grown significantly, with more than 1.4 million riders booking more than 46 million rides on its platform with thousands of drivers. The partnership with Klax Ads is another example of the startup’s commitment to improving transportation services and finding new ways to increase earnings and revenue in the long term, as it is known for its innovative approach to mass transit.
However, despite the announcement of the partnership with Klax Ads, SWVL shares on the NASDAQ Exchange declined by more than 10 percent during trading hours as investors continued to sell their stakes in the company, pushing its market capitalization further below $40 million.
Since its listing on the NASDAQ Exchange on April 4, 2022, at an initial offer price of $9.95 per share, SWVL’s share price has fallen by more than 97 percent, resulting in millions of dollars in lost investments for investors and Egyptian entrepreneur Mostafa Kandil, who owns 6.35 percent of the company.