Swvl Holdings Corp. (NASDAQ:SWVL) said Tuesday it secured a $13 million private investment led by Coefficient LP, a Sawiris family-backed investment firm. Following the announcement, the stock jumped nearly 50%.
Coefficient Becomes Major Shareholder
Coefficient will invest $10 million and become the company’s largest institutional shareholder after the deal closes. An existing investor will provide the remaining $3 million.
Swvl will issue about 8.99 million Class A shares at $1.446 each. The transaction is expected to close Aug. 27, subject to customary conditions.
Coefficient founder and managing partner Abdalla Ali will also join the board.
Swvl Investment Supports U.S. Expansion
The company plans to use the proceeds to expand its U.S. operations and launch a lending service for transportation operators and partners. The funding will also strengthen its balance sheet as it pursues multiyear enterprise and government contracts.
Swvl reported 68% year-over-year revenue growth in the first quarter. Revenue reached $8.2 million, while Gulf Cooperation Council sales climbed 111%.
Recurring revenue accounted for 88% of the total. Net dollar retention reached 114%, while dollar-linked revenue represented 44%. Operating expenses fell to 23% of revenue as the business moved closer to operating breakeven.
CEO Mostafa Kandil said the investment provides the capital and market connections needed to accelerate U.S. growth.
The mobility technology provider serves businesses, governments, schools and health care organizations across seven countries. Its platform uses real-time data and adaptive networks to manage transportation services.
The securities are being sold through a private placement and have not been registered under the Securities Act. The company agreed to file a resale registration statement covering the shares.
SWVL Price Action: Swvl Holdings shares were up 46.95% at $2.16 Tuesday at the time of publication, according to Benzinga Pro data.
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