Swvl, the Cairo-born, Dubai-based mobility startup that once lit up the Burj Khalifa in red to celebrate its billion-dollar valuation as a mobility disruptor, recently announced USD 4.2 M in new contracts across Egypt in sectors like FMCG, telecom, e-commerce, and banking. These deals, touted as a testament to the company's capacity for innovation in transportation solutions, include offerings such as shift-based employee transit and AI-driven commute optimisation for students.
Yet, beneath this optimistic announcement lies a more sobering reality Swvl is fighting to maintain relevance and solvency amid an increasingly precarious financial and operational landscape.
While CEO Mostafa Kandil calls the contracts a "testament to Swvl's ability to deliver transformative solutions," broader questions about the company's sustainability remain unanswered. Mounting legal challenges, delayed financial reports, and persistent operational hurdles paint a picture of a company scrambling for gains amid fears of grinding to a halt.
Swvl's rise to prominence was as dramatic as its subsequent struggles. Founded in Egypt, the company rapidly gained attention for its tech-driven approach to mass transit, securing a USD 1.5 B valuation upon its Nasdaq debut in 2022. However, its stock has plummeted from a USD 10.00 IPO price to less than a dollar at one point in 2023 currently trading at USD 4.79, following allegations of financial instability and operational mismanagement.
A damning report by activist short-biased activist Wolfpack Research in September alleged that Swvl was teetering on the edge of bankruptcy, pointing to dwindling cash reserves of USD 2.9 M and widespread service disruptions in its Cairo operations. The report triggered a 43.62 drop in Swvl's stock, depleting what little investor confidence remains. Adding to its woes, U.S. law firm Pomerantz LLP launched an investigation into potential securities fraud, further undermining trust in the once-promising company.
