- Swvl is implementing a portfolio optimization program to focus on its most profitable operations, improve efficiency and reduce central costs
- Capitalizes on the most profitable TaaS and SaaS operations that currently have >500 contracts in >10 countries generating > $5 million income per month
- Builds on the recent acquisitions of the TaaS and SaaS businesses Viapool, Volt Lines, Shotl and the ongoing acquisition of door2door which are improving profitability margins
- Benefits from a world-class engineering and product team and a technology stack that enables scalability and sustainable growth
NEW YORK, May 31, 2022 /PRNewswire/ — Swvl Holdings (“Swvl” or the “Company”) (NASDAQ: SWVL), a global provider of transformative technology-based transit solutions, today announced that it is implementing a portfolio optimization program to improve efficiency and reduce central costs to accelerate its path to profitability to generate positive cash flow in 2023.
Transportation as a Service (TaaS) business, where Swvl provides technology-based transportation for businesses, schools, universities, industrial facilities, airlines, and other institutional customers through its light asset marketplace , and the software as a service (SaaS) business where Swvl licenses its proprietary technology to transit agencies, bus operators and other owners and users of large vehicle fleets, are experiencing rapid growth. They have now collectively crossed over 500 live accounts across 4 continents with over $5 million monthly income. The recent completed acquisitions of the TaaS and SaaS businesses Viapool, Volt Lines and Shotl and the ongoing acquisition of door2door are contributing to this growth.
The Company’s portfolio optimization program will include the following elements:
- Continuation and organic and inorganic growth of TaaS and SaaS businesses in all geographies of operation, including Germany, Spain, Italy, Swiss, Turkey, Japan, Argentina, Saudi Arabia, United Arab Emirates, Jordan, Egypt, Kenyaand Pakistan;
- Focus of the Business to Consumer (B2C) activity on Egypt and Pakistancurrently the company’s highest B2C revenue contribution and profitability markets;
- Optimize B2C route networks in selected cities as well as staffing and operating expenses; and
- Continued investment in the development of the Company’s proprietary technology stack.
The Company plans to reduce its workforce by approximately 32%. These reductions will focus on roles that have been automated through investments in the Company’s engineering, product and support functions. Swvl plans to provide monetary, non-monetary and job placement support to help transition some of its employees into new roles.
As a result of the portfolio optimization program, Swvl management currently expects the Company to be cash flow positive in 2023.
Swvl is a global provider of transformative technology transit solutions, offering intercity, intracity, B2B and B2G transportation. The Company’s platform provides free semi-private alternatives to public transportation for people who cannot access or afford private options. Every day, Swvl’s parallel transit systems get people where they want, when they want – making mobility safer, more efficient, accessible and environmentally friendly. Customers can book their rides on an easy-to-use proprietary app with various payment options and 24/7 access to high-quality private buses and vans.
For more information about Swvl, please visit www.swvl.com.
Certain statements made herein are not historical facts but are forward-looking statements. Forward-looking statements are generally accompanied by words such as “believe”, “may”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, ” should”, “should”, “plan”, “predict”, “potential”, “seem”, “seek”, “future”, “prospects” and similar expressions which predict or indicate future events or trends or which do not are not statements of historical matters.These forward-looking statements include, but are not limited to, statements regarding future events and other statements that are not historical facts.
These statements are based on the current expectations of Swvl’s management and are not predictions of actual performance. These forward-looking statements are provided for informational purposes only and are not intended to serve and should not be relied upon by any investor as a guarantee, assurance, prediction or definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from the assumptions. Many actual events and circumstances are beyond Swvl’s control. These statements are subject to a number of risks and uncertainties relating to Swvl’s business, and actual results may differ materially. These risks and uncertainties include, but are not limited to: general economic, political and business conditions, including, but not limited to, economic and operational disruptions and other effects of the COVID-19 pandemic; the outcome of any legal proceedings that may be brought against the Company after the implementation of the portfolio optimization program; failure to realize the expected benefits of the portfolio optimization program; the risk that the portfolio optimization program will disrupt Swvl’s current plans and operations; the Company’s ability to execute the portfolio optimization program; the Company’s ability to execute its growth strategy, manage its growth profitably and retain its key employees; competition with other companies in the mobility industry; Swvl’s limited operating history and lack of experience as a public company; the recent implementation of certain policies and procedures to ensure compliance with applicable laws and regulations, including with respect to anti-bribery, anti-corruption and cyber protection; the risk that Swvl may not be able to execute its growth plan, which depends on rapid international expansion; the risk that Swvl may not be able to attract and retain high quality consumers, qualified drivers and other personnel; the risk that Swvl may not be able to protect and enforce its intellectual property rights; the risk that Swvl may not be able to determine user demand to develop new offers on its platform; difficulty in obtaining required registrations, licenses, permits or approvals in the jurisdictions in which Swvl currently operates or may operate in the future; the fact that Swvl currently operates and intends to expand into jurisdictions that are, or have been, characterized by political instability, may have inadequate or limited regulatory and legal frameworks and may have treaties or other limited arrangements, if any, in place to protect foreign investment or participation; the risk that Swvl drivers will be classified as employees, workers or quasi-employees in the jurisdictions in which they operate; the fact that Swvl has operations in countries known to experience high levels of corruption and is subject to territorial anti-corruption laws in those jurisdictions; the ability of Swvl to maintain the listing of its securities on the Nasdaq; costs related to the portfolio optimization program; Swvl’s acquisition of Volt Lines BV and acquisitions of controlling interests in Shotl Transportation, SL, Viapool Inc. and door2door GmbH may not be beneficial to Swvl due to the cost of integrating geographically disparate operations and the diversion of management’s attention to its existing business, among others; and other risks which will be detailed from time to time in filings with the United States Securities and Exchange Commission. The above list of risk factors is not exhaustive. There may be additional risks that Swvl is not currently aware of or that Swvl currently believes to be immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements provide Swvl’s expectations, plans or forecasts regarding future events and beliefs as of the date of such communication. Swvl anticipates that subsequent events and developments will cause Swvl’s assessments and projections to change. However, while Swvl may choose to update these forward-looking statements in the future, Swvl specifically disclaims any obligation to do so. These forward-looking statements should not be taken to represent Swvl’s assessments as of any date subsequent to the date of this communication. Accordingly, undue reliance should not be placed on forward-looking statements.
SOURCESwvl Holdings Corp