Dubai-based mobility company Swvl said Wednesday that it will open to the public through a reverse merger with Queen’s Gambit Growth Capital. The special purpose acquisition company is entirely headed by a woman.
Founded in 2017, Swvl offers ride-sharing services in emerging markets where reliable public transport is not always available.
Unlike ride-hailing services that focus on one-off vehicles or individual vehicles, Swvl focuses on mass transit. This reduces emissions and the cost of otherwise exorbitantly expensive vehicles. The company uses its own algorithm to find the fastest routes to school and work.
The deal with Queen’s Gambit marks Swvl’s stake at approximately $ 1.5 billion, making it the largest Middle East-based unicorn to debut on the Nasdaq. The planned end date of the merger is not indicated, but when completed, the company will trade under the ticker SWVL. A reverser merger involves a private company that is publicly traded by purchasing the controlling shares of a public company.
Swvl currently operates in 10 cities in the Middle East and Africa and aims to enter new markets. The company’s revenue in 2020 is about $ 26 million, and Swvl predicts that number will increase to $ 79 million by the end of 2021. Swvl rates the global mass transit market at $ 1 trillion.
The company did not disclose its 2020 net profit or loss.
“Mass transportation systems in cities around the world are full of flaws, resulting in congestion, environmental problems and reduced productivity,” said Mostafa Kandil, founder and CEO of Swvl. Since its inception, 1.4 million riders have booked more than 46 million rides via the platform.
Victoria Grace, Founder and Chief Executive Officer of The Queen’s Gambit, said:
Grace first announced the SPAC in December, stating that in January the fund raised $ 300 million, which exceeded its initial target. Grace then launched a second blank check company in February called Queens Gambit Growth Capital II.
In a statement, Grace said he was trying to identify and grow “a destructive platform that solves complex challenges and empowers underserved people,” and “each of them, etc.” in Swvl. Said found.
The merger is in the midst of a SPAC investment boom that began in 2020. Last year, the so-called blank check company raised a record $ 83.4 billion at the time, according to SPACInsider. To date, $ 115 billion has been raised in 2021, but enthusiasm has cooled somewhat due to regulatory pressures and cases of poor performance.
SPAC has been a popular path to the public market for clean technology companies, following a surge in ESG investment. According to Raymond James data, 55 SPAC transactions in the clean technology sector have been announced since March 2020.
The company said the merger spans industry, scale, and business stages, but said that electric vehicle-focused transactions dominate the list.
As part of that, Swvl claims to have prevented about £ 245m of carbon emissions since its inception compared to the single rider option.
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Swvl, a green-focused mass transit company, is all published via women’s SPACs
Source link Swvl, a green-focused mass transit company, is all published via women’s SPACs