Dubai-based mass transit app Swvl Inc will make an initial $15 million investment in Argentina to improve the reliability, safety and demand responsiveness of mass transit systems in the country.
It will also develop research and development capabilities in the Latin American country through the creation of an engineering hub and plans to expand its B2C and B2B operations across Argentina with its proprietary technology, it said in a statement.
Swvl's latest move follows its acquisition of a controlling interest in Viapool, a mass transit platform, founded in Argentina.
Mostafa Kandil, Swvl Founder and CEO, said: "We are excited to strengthen our strategic commitment to Argentina in collaboration with the Argentinian government, with what we believe is a compelling investment opportunity. Together, we will work to significantly improve mass transit capabilities nationally while creating employment opportunities."
"These investments and collaborations further our mission to enable riders and drivers to realize greater economic opportunities, our R&D capabilities across multiple engineering hubs and our organic and inorganic geographic expansion," Youssef Salem, Swvl CFO, said.
"Moving forward, we expect to deploy additional capital and resources to further scale our operations across South America, as the region presents tremendous growth opportunities and attractive unit economics," he added.
Swvl is expected to IPO 35 percent of its shares on the Nasdaq stock exchange this quarter through a merger with US SPAC Queen’s Gambit Growth Capital.
The European Bank for Reconstruction and Development (EBRD) and Teklas Ventures, will invest $21.5 million in a private placement (PIPE), joining Agility, Luxor Capital, Chimera and Zain which agreed last year to commit $100 million.
(Reporting by Seban Scaria; editing by Daniel Luiz)