Dubai-based mobility firm Swvl mentioned Wednesday that it plans to go public by way of a reverse merger with Queen’s Gambit Progress Capital. The particular goal acquisition firm is led solely by girls.
Based in 2017, Swvl gives ridesharing companies in rising markets that do not all the time have dependable public transportation.
In contrast to ride-hailing companies that concentrate on one-off and particular person rides, Swvl focuses on mass transit. This each reduces emissions, and cuts the fee for what in any other case could be a prohibitively costly trip. The corporate makes use of a proprietary algorithm to determine the quickest routes, together with for issues like going to highschool or to work.
The take care of Queen’s Gambit values Swvl’s fairness at round $1.5 billion, making it the biggest Center East-based unicorn to debut on the Nasdaq. An anticipated time limit for the merger was not given, however as soon as full the corporate will commerce below the ticker SWVL. Reverser mergers contain personal firms going public by shopping for a controlling share of a public agency.
Swvl presently operates in 10 cities throughout the Center East and Africa, and it has its sights set on entry into new markets. The corporate’s 2020 income was roughly $26 million, and Swvl expects that quantity to rise to $79 million throughout 2021. All advised, Swvl values the worldwide mass transit market at $1 trillion.
The corporate didn’t disclose 2020’s internet revenue or internet loss.
“Mass transit systems in cities around the world are riddled with deficiencies, resulting in congestion, environmental concerns and reduced productivity,” mentioned Swvl founder and CEO Mostafa Kandil. Because the firm’s founding 1.4 million riders have booked greater than 46 million rides by way of the platform.
“Having established a leadership position in key emerging markets, we believe Swvl is ready to capitalize on a truly global market opportunity,” added Victoria Grace, founder and CEO of Queen’s Gambit.
SPACs going inexperienced
Grace first introduced the SPAC in December, and in January mentioned the fund had raised $300 million, which was above the preliminary goal. Grace subsequently launched a second blank-check firm in February known as Queen’s Gambit Progress Capital II.
Grace mentioned in a assertion that she was trying to establish and develop a “disruptive platform that solves complex challenges and empowers underserved populations,” noting that in Swvl she discovered “each of those things and more.”
The merger comes amid a growth in SPAC investing that started in 2020. Final yr so-called clean verify firms raised a then file $83.4 billion, in line with SPACInsider. For 2021 to this point $115 billion has been raised, though regulatory pressures and a few high-profile cases of lackluster efficiency have considerably cooled the passion.
SPACs have been a standard path to the public marketplace for clear tech firms on the heels of a surge in ESG investing. Since March 2020 55 SPAC offers within the clear tech area have been introduced, in line with knowledge from Raymond James.
The agency famous that the mergers span business, dimension and enterprise phases, however mentioned that electrical vehicle-focused offers dominate the checklist.
For its half, Swvl claims to have prevented roughly 245 million kilos of carbon emissions since its inception relative to single-rider choices.
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