Egyptian ride-sharing company SWVL is planning to list on the Nasdaq after entering a definitive agreement with Queen’s Gambit Growth Capital to combine their businesses in a merger transaction valued at approximately $1.5 billion. The transaction is expected to close by 2021 Q4.
SWVl shareholders will own 65% of the combined company, with Queen Gambit’s Founder and CEO Victoria Grace joining the board of the new company.
The combined company, SWVL Holdings Corp, is expected to trade under the ticker SWVL, which will make it the biggest mobility company in Africa and the second MENA startup to go public via a SPAC merger. A joint press release says the transaction will provide gross proceeds of approximately $445 million to the combined company. Global investors Agility, Luxor Capital Group, and Zain will contribute $100 million through private investment public equity.
According to CEO Mostafa Kandil, the partnership will enable the startup to expand its daily commuting offerings and create greater value for stakeholders.
With their partnership, as a public company, we will expand our daily commuting offerings and enterprise TaaS services that remove barriers to seamless mobility for the populations that need it most. In doing so, we will create even greater value for all stakeholders and continue innovating best-in-class technology solutions that improve the universal, daily struggle of mobility for so many.Mostafa Kandil
In 2020, the company recorded gross revenues of $20 million, targeting annual revenues of $79 million in 2021. It then plans to double its gross revenues in 2022, targeting $ 141 million and later hitting $403 million in 2023. The company targets to expand to 20 countries across five continents by 2025, expecting revenues of $1 billion.
The mobility startup targes a 15% EBITDA margin in the long term.