- Swvl is implementing a portfolio optimization program to
focus on its highest profitability operations, enhance efficiency
and reduce central costs
- Capitalizes on the highest profitability operations TaaS and
SaaS which currently have > 500 contracts in > 10 countries
generating > $5m revenue per
month
- Builds on recent acquisitions of TaaS and SaaS businesses
Viapool, Volt Lines, Shotl and pending acquisition of door2door
which improve profitability margins
- Benefits from a world class engineering and product team and
technology stack which allows for scalability and sustainable
growth
NEW
YORK, May 31, 2022 /PRNewswire/ -- Swvl Holdings
("Swvl" or the "Company") (NASDAQ: SWVL), a global provider of
transformative tech-enabled mass transit solutions, today announced
that it is implementing a portfolio optimization program to enhance
efficiency and reduce central costs to accelerate its path to
profitability to turn cash flow positive in 2023.
Transport as a Service (TaaS) business, where Swvl provides
technology-enabled transportation for corporates, schools,
universities, industrial facilities, airlines and other
institutional clients via its asset-light marketplace, and Software
as a Service (SaaS) business where Swvl licenses its proprietary
technology to transit agencies, bus operators and other
high-capacity vehicles fleet owners and users, are both growing
rapidly. They have now collectively crossed more than 500 live
accounts across 4 continents with more than $5m monthly revenues. The recent closed
acquisitions of TaaS and SaaS businesses Viapool, Volt Lines and
Shotl and pending acquisition of door2door contribute to this
growth.
The Company's portfolio optimization program will include the
following:
- Continuation and organic and inorganic growth of TaaS and SaaS
business across all geographies of operations including
Germany, Spain, Italy,
Switzerland, Turkey, Japan, Argentina, Saudi
Arabia, United Arab
Emirates, Jordan,
Egypt, Kenya, and Pakistan;
- Focus of the Business to Consumer (B2C) business on
Egypt and Pakistan, currently the Company's highest B2C
revenue contribution and profitability markets;
- Optimizing B2C route networks in certain cities as well as
headcount and operating expenses; and
- Continued investment in developing the Company's proprietary
technology stack.
The Company expects to reduce its headcount by approximately
32%. Such reductions will focus on roles which have been automated
by investments in the Company's engineering and product and support
functions. Swvl plans to provide monetary, non-monetary and job
placement support to help with the transition of certain of its
employees to new roles.
As a result of the portfolio optimization program, Swvl's
management currently expects that the Company will be cash flow
positive in 2023.
About Swvl
Swvl is a global provider of transformative
tech-enabled mass transit solutions, offering intercity, intracity,
B2B and B2G transportation. The Company's platform provides
complimentary semi-private alternatives to public transportation
for individuals who cannot access or afford private options. Every
day, Swvl's parallel mass transit systems are empowering
individuals to go 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 varied payment options and 24 / 7 access to high-quality
private buses and vans.
For additional information about Swvl, please visit
www.swvl.com.
Forward Looking Statements
Certain statements made
herein are not historical facts but are forward-looking statements.
Forward-looking statements generally are accompanied by words such
as "believe," "may," "will," "estimate," "continue," "anticipate,"
"intend," "expect," "should," "would," "plan," "predict,"
"potential," "seem," "seek," "future," "outlook" and similar
expressions that predict or indicate future events or trends or
that 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 illustrative purposes
only and are not intended to serve as, and must not be relied on,
by any investor as a guarantee, an assurance, a prediction or a
definitive statement of fact or probability. Actual events and
circumstances are difficult or impossible to predict and will
differ from assumptions. Many actual events and circumstances are
beyond the control of Swvl. These statements are subject to a
number of risks and uncertainties regarding 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 the economic and
operational disruptions and other effects of the COVID-19 pandemic;
the outcome of any legal proceedings that may be instituted against
the Company after the institution of the portfolio optimization
program; failure to realize the anticipated benefits of the
portfolio optimization program; the risk that the portfolio
optimization program disrupts Swvl's current plans and operations;
the ability of the Company to execute the portfolio optimization
program; the ability of the Company to execute its growth strategy,
manage 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;
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 is not able to execute its growth plan, which
depends on rapid, international expansion; the risk that Swvl is
unable to attract and retain consumers and qualified drivers and
other high quality personnel; the risk that Swvl is unable to
protect and enforce its intellectual property rights; the risk that
Swvl is unable to determine rider demand to develop new offerings
on its platform; the difficulty of obtaining required
registrations, licenses, permits or approvals in jurisdictions in
which Swvl currently operates or may in the future operate; the
fact that Swvl currently operates in 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 limited, if any, treaties or other
arrangements in place to protect foreign investment or involvement;
the risk that Swvl's drivers could be classified as employees,
workers or quasi-employees in the jurisdictions 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 these jurisdictions; the ability of Swvl to maintain the
listing of its securities on Nasdaq; costs related to the portfolio
optimization program; Swvl's acquisition of Volt Lines B.V. and
acquisitions of controlling interests in Shotl Transportation,
S.L., Viapool Inc. and door2door GmbH may not be beneficial to Swvl
as a result of the cost of integrating geographically disparate
operations and the diversion of management's attention from its
existing business, among other things; and other risks that will be
detailed from time to time in filings with the U.S. Securities and
Exchange Commission. The foregoing list of risk factors is not
exhaustive. There may be additional risks that Swvl presently does
not know or that Swvl currently believes are immaterial that could
also cause actual results to differ from those contained in
forward-looking statements. In addition, forward-looking statements
provide Swvl's expectations, plans or forecasts of future events
and views as of the date of this communication. Swvl anticipates
that subsequent events and developments will cause Swvl's
assessments and projections to change. However, while Swvl may
elect to update these forward-looking statements in the future,
Swvl specifically disclaims any obligation to do so. These
forward-looking statements should not be relied upon as
representing Swvl's assessments as of any date subsequent to the
date of this communication. Accordingly, undue reliance should not
be placed upon the forward-looking statements.
Contact
Youssef Salem
Swvl CFO
Investor.relations@swvl.com
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SOURCE Swvl Holdings Corp
