Swvl Raises $13M for U.S. Expansion and Transport Lending Offering
Swvl Holdings Corp (NASDAQ:SWVL) has entered into a definitive agreement to raise $13 million through the issuance of nearly 9 million Class A shares at $1.446 per share, with Coefficient LP committing $10 million and an existing shareholder investing $3 million. The funds will be used for U.S. expansion, launching a lending offering for transport operators, and strengthening its balance sheet to pursue long-term contracts. The company reported strong first-quarter performance, including 68% year-over-year revenue growth driven by significant regional increases in the Gulf Cooperation Council and Egypt. Recurring revenue rose sharply, contributing nearly all of total revenue, while operating losses narrowed significantly despite rising costs. However, concerns remain about shareholder dilution due to a near-90% increase in share count. The expansion into new markets and introduction of financial services pose execution risks as Swvl has not disclosed U.S. revenue or credit risk details for the lending offering. While Coefficient’s investment brings strategic value through board representation, questions linger about whether simultaneous geographic and product diversification is manageable.
