- Dubai-based mobility startup SWVL announced that it will invest up to $15 million to ramp up its operations in the Argentinian market.
- The move comes after SWVL's acquisition of Viapool, an Argentina-based mass transit app.
- SWVL said that it plans to use the money to expand its B2C and B2B offerings using its existing proprietary technology.
- Earlier this year, SWVL raised $21.5 million in private investment in a public equity (PIPE) deal as part of its proposed SPAC with Queen's Gambit.
Swvl Inc. ("Swvl" or the "Company"), a global provider of transformative tech-enabled mass transit solutions, and the government of Argentina today announced that Swvl will become a significant foreign direct investor in Argentina to improve the reliability, safety and demand responsiveness of mass transit systems across the country. Swvl will make an initial $15 million investment, which will be used to generate jobs and self-employment opportunities over the next three plus years and further develop Swvl's research and development capabilities through the creation of an engineering hub in Argentina. Additionally, Swvl intends to collaborate with all interested parties to expand its B2C and B2B operations across Argentina with Swvl's proprietary technology.
This milestone builds on Swvl's previously announced acquisition of a controlling interest in Viapool, a mass transit platform, founded in Argentina, with a unique first-mover advantage as the only provider of on-demand bus hailing services in Buenos Aires, Argentina and Santiago, Chile, two high growth markets. Viapool, which will be fully integrated with Swvl in short order, provides an ideally situated hub from which the Company expects to generate additional expansion opportunities across South America. Viapool serves more than 80 corporate clients in South America, while its fixed bus routes reduce commute time by approximately 50 percent.
Mostafa Kandil, Swvl Founder and CEO, said, "We are excited to strengthen our strategic commitment to Argentina in collaboration with the Argentinian government, with what we believe is a compelling investment opportunity. Together, we will work to significantly improve mass transit capabilities nationally while creating employment opportunities. In each country and locality in which Swvl operates, we strive to collaborate hand in hand with governments to realize the maximum benefit for all stakeholders involved, and we are confident that our platform, as well as the daily benefits Argentinians, will have on their day to day commutes, will have a transformative positive impact in Argentina. We look forward to continuing our collaboration with the Argentinian government at all levels and other relevant stakeholders, including local transport operators and their drivers, to further advance mobility solutions that make daily commuting more accessible, safe, convenient and sustainable for all citizens in Argentina."
Youssef Salem, Swvl CFO, said, "With this multi-year financial commitment and our acquisition of a controlling interest in Viapool, Swvl is demonstrating its dedication to improving mobility across Argentina. These investments and collaborations further our mission to enable riders and drivers to realize greater economic opportunities, our R&D capabilities across multiple engineering hubs and our organic and inorganic geographic expansion. Moving forward, we expect to deploy additional capital and resources to further scale our operations across South America, as the region presents tremendous growth opportunities and attractive unit economics."