EGYPT – Swvl, an Egyptian bus-hailing startup, has achieved pre-funding of the total PIPE subscription of US$35.5 million, to accelerate Swvl’s expansion and increase its investment in its patented technological platform.

The purchase has been pre-funded by a number of investors, including Agility and Chimera Abu Dhabi. Swvl’s proposed business merger with Queens Gambit Growth Capital is the reason for the subscription.

Swvl has set a goal of generating US$1 billion in yearly gross revenue and expanding to more than 30 cities in more than 20 countries by 2025. According to the subscription agreements, the investors who pre-funded the PIPE purchased Swvl exchangeable notes.

“We greatly appreciate that many highly regarded global investors have clear confidence in our growth strategy. With this immediate infusion of growth capital, we are even better positioned to bring our transformative daily commuting, inter-city retail travel and TaaS offerings to new markets,” Mostafa Kandil, Swvl founder and CEO, said.

“Each and every day we are advancing our mission to reinvent the US$1 trillion mass transit industry with tech-enabled solutions.”

Each exchangeable note will be immediately exchanged for shares of the combined company at an exchange price of US$8.50 per share when Swvl’s business combination with Queen’s Gambit Growth Capital closes.

The amount of each note investor’s subscription in the PIPE was decreased by the buying price of such investor’s exchangeable note when the exchangeable notes were issued.

“We have already witnessed the disruptive power of Swvl’s parallel mass transit platform in many of our largest markets,” noted Tarek Sultan, vice chairman of Agility.

“After getting to know their team better over the past few months, we have full confidence in their ability to solve complex mobility challenges. We are excited to accelerate Swvl’s global expansion with this funding, and look forward to exploring compelling opportunities for strategic and operational collaboration moving forward.”

Swvl recently announced the signing of a formal deal to acquire a majority interest in Shotl, a Barcelona-based mass transportation platform that partners with governments and enterprises to provide on-demand bus and van services across Europe, Asia, and Latin America.

Swvl’s debut into Europe will be accelerated by more than a year as a result of the acquisition. Swvl also plans to use the PIPE funds to accelerate the availability of its innovative mass transit solutions in other emerging market cities spanning Africa, Asia, and the Middle East, according to the announcement.

Swvl has constructed a parallel mass transit system in ten megacities across Africa, Asia, and the Middle East that provides intercity, intracity, B2B, and B2G mobility.

Customers can book rides through an app with a variety of payment choices and access private buses and vans that follow set routes, stations, times, and costs.