Swvl Jumps Nearly 50% After $13M Investment to Fuel US Expansion

Swvl Holdings Corp. announced on Tuesday a $13 million private placement led by Coefficient LP, an investment firm backed by the Sawiris family. Shares jumped nearly 50% following the announcement.

Coefficient Becomes Major Shareholder

Coefficient will invest $10 million and become the company's largest institutional shareholder upon completion of the transaction. Existing investors will provide the remaining $3 million.

Swvl will issue approximately 8.99 million Class A shares at $1.446 per share. The transaction is expected to close on August 27, subject to customary conditions.

Coefficient founder and managing partner Abdalla Ali will also join the board of directors.

Swvl Investment Supports US Expansion

The company plans to use the proceeds to expand its US operations and launch lending services for transportation operators and partners. The financing will also strengthen its balance sheet to pursue multi-year enterprise and government contracts.

Swvl reported 68% year-over-year revenue growth in the first quarter. Revenue reached $8.2 million, with Gulf Cooperation Council region sales growing 111%.

Recurring revenue accounted for 88% of total revenue. Net dollar retention reached 114%, with US dollar-linked revenue accounting for 44%. Operating expenses fell to 23% of revenue, with the business nearing operating breakeven.

CEO Mostafa Kandil said the investment provides the capital and market connections needed to accelerate US growth.

The mobility technology provider serves enterprises, governments, schools, and healthcare institutions across seven countries. Its platform uses real-time data and adaptive networks to manage transportation services.

The securities were sold in a private placement and were not registered under the Securities Act. The company agreed to file a resale registration statement covering these shares.

SWVL stock performance: As of press time, Swvl Holdings shares were up 46.95% to $2.16 on Tuesday.