Swvl, a ride-sharing company based in Cairo and Dubai, announced Tuesday that it plans to merge with Queens Gambit Growth Capital for special purpose acquisitions. Swvl will be valued at approximately $1.5 billion.Mostafa Kandil and Mahmoud Nouh founded Swvl in 2017. The company was founded by Mostafa Kandil, Mahmoud Nouh and Ahmed Sabbah in 2017.Its bus-hailing services allow users to travel within states by booking seats on fixed-route buses. These services are more affordable than single-rider options, and help reduce carbon emissions. Swvl claims that it has prevented over 220 million pounds worth of carbon dioxide from being emitted since its inception.Swvl was launched in Egypt and expanded to Kenyan, Pakistan, Jordan, Saudi Arabia, and Jordan. As part of its global strategy, the company moved its headquarters from Egypt to Dubai.Swvl's offerings go beyond bus-hailing. The company now offers inter-city rides and car ride-sharing in all 10 cities it serves across Africa and Middle East.Queens Gambit, the woman-led SPAC that negotiated the deal, raised $300,000,000 in January. It also added $45,000,000 via an overallotment option with underwriters. This option was aimed at startups in the clean energy, mobility, and healthcare sectors.In the statement, Agility Capital, Luxor Capital, and Zain Group are mentioned as investors. They will contribute $100 Million through a private investment made in public equity (PIPE).According to Crunchbase Swvl has raised more than $170 million. Swvl is one of the most venture-backed startups in Africa. In the past, Swvl has been lauded as a unicorn and will achieve that status when the SPAC merger is complete.The ticker SWVL will be used to trade the company. It will be the first Egyptian startup to become public outside Egypt, and the second after Fawry. The listing will make it the largest African unicorn debut on any U.S.-listed stock exchange, surpassing Jumia's debut of $1.1 million on the NYSE. Swvl, a Middle East startup, joins music streaming platform Anghami to become the second startup to go public through a SPAC merger.According to the statement, Swvl's 2020 annual gross revenues were $26 million. The company anticipates that its annual gross revenues will rise to $79 million by this year and $1billion by 2025, after it expands to 20 countries on five continents.Victoria Grace, founder, CEO and chief executive officer, spoke out about why Queens Gambit selected Swvl to be her partner. She stated that the company was a disruptive platform that can solve complex problems and empower underserved communities.Swvl has established a leadership position within key emerging markets and we believe that Swvl can capitalize on a truly global market chance, she said.TechCrunch reported in May that SPACs did not target African startups due to a lack of market satisfaction, private capital, and global appeal. Graces comments indicate that Swvl is open to the public market and has that global appeal, despite only being in business for four years.
