Swvl secures additional $2 million investment

DUBAI - Swvl Holdings Corp (NASDAQ:SWVL), a global provider of tech-driven mobility solutions, with a current market capitalization of $47.72 million, has confirmed the closure of a $2 million private placement on Monday. This additional funding follows a definitive agreement from November 17, 2024, where investors were granted the option to purchase pre-funded warrants for ordinary shares at $4.79 each. According to InvestingPro data, the stock has shown a 26% gain over the past year despite recent volatility.

Investors have agreed to a 6-month lock-up period for the newly acquired securities and will limit their sales to less than 20 percent of the securities every 90 days, based on the trading volume on the sale date. This structured sale approach comes at a critical time, as InvestingPro analysis shows the company’s current ratio at 0.45, indicating potential liquidity challenges. This financing could help address short-term obligations as the company plans to expand its U.S. operations.

The net proceeds from the private placement are earmarked for working capital and general corporate purposes. Swvl’s recent progress includes securing multi-million dollar contracts in Egypt, Saudi Arabia, and the UAE, as well as obtaining HSBC financing to support its sales pipeline. This funding comes as the company faces a 41% year-over-year revenue decline, with current revenues at $19.8 million. InvestingPro subscribers can access 8 additional key financial insights about Swvl’s growth prospects as it prepares to accelerate its expansion in the United States and the GCC region.

This investment serves as an extension to a $4.7 million private placement announced in November 2024. The offering was conducted under an exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended, and/or Regulation D, meaning the securities may not be offered or sold in the U.S. without registration or an exemption from registration requirements.

Swvl, known for enhancing transit system efficiency with its technology, offers safer and more sustainable transportation solutions for enterprises and governments. The information in this article is based on a press release statement.

In other recent news, Swvl Holdings Corp has been making notable strides in expanding its global presence. The company has relaunched its services in the United Arab Emirates, securing contracts with four major customers to bolster its position in the nation’s smart transit market. Additionally, Swvl has entered into a credit agreement with HSBC Bank, aiming to support its expansion efforts in the fourth quarter of 2024. This strategic collaboration is expected to improve Swvl’s financial processes and operational efficiency.

In another significant development, Swvl secured a three-year contract with almajal G4S (CSE:G4S), a prominent facility management service provider in Saudi Arabia. This partnership is set to enhance G4S’s fleet operations across major cities, deploying over 14,000 trips each month. Swvl will offer its Software (ETR:SOWGn) as a Service (SaaS) platform to G4S, aiming to optimize routes, track in real-time, and provide advanced analytics.

These recent developments underscore Swvl’s commitment to enhancing the efficiency of transit systems globally. However, investors are reminded that these forward-looking statements are subject to risks, uncertainties, and actual future events that may cause results to differ materially.

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