ArabFinance: Swvl Inc., a global provider of transformative tech-enabled mass transit solutions, will enter Latin America for the first time with the acquisition of a controlling stake in transit company Viapool, which operates in Argentina and Chile, the company announced in a statement.
The acquisition will represent Swvl's launch of a Latin American marketplace following its pending acquisition of a controlling interest in mass transit Software as a Service (SaaS) platform, Shotl Transportation, S.L. (Shotl), which, at completion, will more than double Swvl's geographic footprint with the addition of 22 cities across 10 countries.
The closing of the Viapool transaction is subject to customary closing conditions and is expected to occur in the first quarter of 2022.
It is worth noting that Viapool fills the gap between public transportation and private ride hailing alternatives, which can be prohibitively expensive in emerging markets, offering a secure, reliable and convenient experience for customers.
The company offers daily commuters and over 80 corporate clients fixed bus routes that reduce commute time by approximately 50% compared to public transportation and are up to 60% cheaper than private ride hailing alternatives.
Viapool shares our vision of transforming public transportation by making daily commuting more accessible, convenient and sustainable, and has demonstrated impressive growth, unit economics and customer traction. By adding Viapool to the Swvl platform, we will be ideally positioned to scale our operations to additional cities within the region, Mostafa Kandil, Swvl Founder and CEO, commented.
"The acquisition of a controlling interest in Viapool is expected to be a major milestone in our inorganic growth strategy following the definitive agreement to acquire a controlling interest in Shotl. It represents an acquisition of a target which is growing rapidly and profitably with a blue-chip client base in attractive markets, Youssef Salem, Swvl CFO, said.
The two transactions allow us to create a strong foothold across Latin America and Europe to complement our leading position across the Middle East, Africa and South Asia and establish a global platform, Salem concluded.
Swvl is a global tech startup that provides a semi-private alternative to public transportation for individuals who cannot afford or access private options. Customers can book their rides on an easy-to-use app with varied payment options and access high-quality private buses and vans that operate according to fixed routes, stations, times, and prices.
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