SWVL to lay off 32 per cent of its workforce, expects to turn profitable in 2023
- Egypt-born and Dubai-headquartered mobility startup SWVL, announced plans to reduce its workforce by 32 per cent.
- The planned layoffs will impact teams responsible for functions that have been automated following investment in engineering, product and support functions, SWVL said in a statement, adding that it plans to turn profitable next year.
- The startup has been on an acquisitions spree since last year. So far, it has managed to acquire four international startups, including UK’s Zeelo, Germany’s door2door, Turkey’s Voltlines, Spain’s Shotl and Argentina’s Viapool.
Swvl Holdings, a global provider of transformative tech-enabled mass transit solutions, today announced that it is implementing a portfolio optimization program to enhance efficiency and reduce central costs to accelerate its path to profitability to turn cash flow positive in 2023. Transport as a Service (TaaS) business, where Swvl provides technology-enabled transportation for corporates, schools, universities, industrial facilities, airlines and other institutional clients via its asset-light marketplace, and Software as a Service (SaaS) business where Swvl licenses its proprietary technology to transit agencies, bus operators and other high-capacity vehicles fleet owners and users, are both growing rapidly. They have now collectively crossed more than 500 live accounts across 4 continents with more than $5m monthly revenues.
The Company’s portfolio optimization program will include the following:
Continuation and organic and inorganic growth of TaaS and SaaS business across all geographies of operations including Germany, Spain, Italy, Switzerland, Turkey, Japan, Argentina, Saudi Arabia, United Arab Emirates, Jordan, Egypt, Kenya, and Pakistan; Focus of the Business to Consumer (B2C) business on Egypt and Pakistan, currently the Company’s highest B2C revenue contribution and profitability markets; Optimizing B2C route networks in certain cities as well as headcount and operating expenses; Continued investment in developing the Company’s proprietary technology stack.
The recently closed acquisitions of TaaS and SaaS businesses Viapool, Volt Lines and Shotl and the pending acquisition of door2door contribute to this growth.
The Company expects to reduce its headcount by approximately 32%. Such reductions will focus on roles automated by investments in the Company’s engineering and product and support functions. Swvl plans to provide monetary, non-monetary and job placement support to help transition certain of its employees to new roles. As a result of the portfolio optimization program, Swvl’s management currently expects that the company will be cash-flow positive in 2023.