Swvl, a Dubai-based provider of transformative mass transit and shared mobility solutions, is to acquire a controlling interest in Shotl, a mass transit platform that partners with municipalities and corporations to provide on-demand bus and van services across Europe, LATAM and APAC – optimising public transport systems and decreasing dependence on costly private options.
Shotl has a presence across 22 cities in 10 countries including Brazil and Japan and has over 350,000 bookings to date. The platform has more than 10% market share in Europe and is focused in solving challenges posed by transportation voids in suburbs, cities, campuses and for populations living or working in low-density areas that are largely underserved by existing mass transit and ride sharing options with an on-demand platform that is simple to use, flexible, and sustainable.
Shotl will now be able to leverage Swvl’s proprietary technologies to further optimise routes and maximise vehicle load, all the while reducing traffic congestion.
“Our two companies share the view that there is an urgent need to transform traditional public transportation to make it more accessible, convenient and sustainable,” said Mostafa Kandil, Swvl Founder and CEO. “Shotl’s vision for the future of mobility, with an emphasis on electrification, the reduction of congestion and emissions, and affordability – is exactly what Swvl has already achieved in ten emerging market megacities.
“With Shotl’s strategic relationships, rapidly growing user base and deep knowledge of its market landscapes, Swvl is meaningfully expanding its core markets, in line with our publicly stated growth objectives.”
Gerard Martret, CEO and co-founder of Shotl, added: “We are very pleased to be joining the Swvl team, working in concert to realise our shared vision of building more equitable and accessible mass transit systems worldwide.
“In just a few years, Swvl has established itself as a market leader, with rapid growth and unparalleled tech-enabled offerings. Swvl is ideally situated for expansion into European markets and will immediately capitalise on our local partnerships and brand value. As a company that has made significant strides in advancing sustainable mass transit over the past several years, we are confident that Shotl’s market-leading technology and expertise will greatly contribute to the Swvl platform, advancing our mission to provide superior transportation alternatives for all.”
Youssef Salem, Swvl CFO, added: “This partnership reinforces Swvl’s role as the leading mass transit technology platform globally. Our vision is to back local and regional champions in the space to achieve our mission of delivering safe, reliable and affordable mass transit to the entire globe.
“Shotl brings significant value to this ecosystem with its pan-European, LATAM and APAC presence, on-demand SaaS technology, B2G and OEM relationships and electrification and autonomous initiatives. With this partnership putting us significantly ahead of plan in these areas, we will continue to rapidly pursue strategic initiatives.
Swvl did not reveal the size of the transaction but said the deal is expected to close in the fourth calendar quarter of 2021, subject to customary closing conditions.
Swvl currently operates in 10 cities in Egypt, Kenya, Pakistan, the UAE, Saudi Arabia and Jordan. In July, it signed a merger deal with special purpose acquisition company (SPAC) Queen’s Gambit Growth Capital that would result in it being listed on Nasdaq.
SWVL’s valuation is approximately USD1.5 billion, making it the first USD1 billion-plus unicorn from the Middle East to list on Nasdaq. The transaction is expected to close in the fourth quarter of 2021.
