ArabFinance: Swvl Inc announced an additional private investment in public equity (PIPE) related to its proposed business merger with Queen's Gambit Growth Capital, the first special purpose acquisition company founded and led entirely by women, according to a press release.

This PIPE is expected to leverage Swvls balance sheet and strengthen its strategic growth initiatives.

"Armed with additional funding certainty, we are confident in Swvl's ability to bring its transformative technology and services to new markets, in turn transforming a $1 trillion global mass transit industry that is sorely in need of effective solutions. We look forward to completing the business combination, entering the public market, and continuing to create tremendous value for all stakeholders," Swvl Founder and CEO Mostafa Kandil commented.

Moreover, Swvl has made deals for an additional $21.5 million of common stock in a PIPE with more new flagship investors, including European Bank for Reconstruction and Development (EBRD).

These institutions join a unique group of global strategic and financial investors, providing fully committed PIPE financing for the transaction, including Agility, Luxor Capital Group, Chimera, and Zain.

For his part, Sue Barrett, Director, Sustainable Infrastructure for the Middle East, Turkey, and Africa, said: "Swvl is a highly dynamic tech investor with a transformative business model that brings tangible benefits to travelers in Egypt and other countries of operation of the EBRD, benefiting female travelers in particular."

The investment terms are tangibly similar to the terms of the initial PIPE financing announced along with Swvl's proposed business combination transaction with Queen's Gambit on July 28th 2021.

This additional investment raises the expected aggregate amount of PIPE proceeds to $121.5 million, which will provide additional capital to finance Swvl's expansion plans and investments in its proprietary technology platform.

Meanwhile, Founder and CEO of Queen's Gambit Growth Capital Victoria Grace said: "The additional capital is expected to allow Swvl to continue to create significant value for all stakeholders. Swvl continues to be uniquely positioned from a technological, financial, and operational basis to execute on this tremendous market opportunity."

Youssef Salem, Swvl CFO, added: " With this additional infusion of growth capital, we expect to be even better positioned to pursue further organic and inorganic strategic initiatives after our recent acquisitions of controlling interests in Shotl and Viapool and investments in mass transit platforms in Mexico and the United Kingdom."

It is worth noting that Swvl has closed a $66.5 million pre-funding out of the PIPE to speed up the process its growth strategy, and the investors who pre-funded the PIPE purchased exchangeable notes of Swvl.

Once Swvl's business combination with Queen's Gambit in complete, each exchangeable note will be automatically exchanged for shares of the combined company at a price of $8.5 per share for $45.5 million of notes that were issued in 2021 and $9.1 per share for $21 million of notes that were issued in 2022.

As per EBRDs commitment, it is subject to entering into an investment framework agreement concerning certain institutional requirements of EBRD, including social and environmental policies and practices, corporate governance, and compliance matters and use of proceeds.

On February 1st, Swvls CFO told revealed that the company is getting ready to list 35% of its shares on the Nasdaq Stock Market after merging with Queen's Gambit Growth Capital in February or March.

In July 2021, Swvl announced it signed the final deal to merge with Queens Gambit Growth Capital in a deal estimated at a value of $1.5 billion.

Founded in 2017, SWVL is an Egyptian ride-hailing startup based in Dubai that offers intra and intercity travel options, along with B2B partnerships with public and private institutions aimed at transporting students and employees.

Copyright 2022 Arab Finance Brokerage Company All rights reserved. Provided by SyndiGate Media Inc. (

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an as is and as available basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.