The European Bank for Reconstruction and Development (EBRD) will invest $10 million in Egypt’s on-demand bus-hailing service Swvl to promote women’s safety on public transport, according to a statement released on Thursday.
A subscription agreement has been signed between the parties for Swvl Inc’s subsidiary Pivotal Holdings Corp to receive the sum.
“The EBRD’s investment will close substantially concurrently with the closing of the business combination between Queen’s Gambit Growth Capital and Swvl,” the EBRD said in a statement.
“The investment is subject to customary closing conditions, the completion of the business merger and the signing of an investment framework agreement to meet certain EBRD institutional requirements, including on environmental and social policies and practices and compliance matters.”
This investment will aid in technological development, expansion, and the introduction of Swvl’s services in Egypt, which is Swvl’s largest market.
Meanwhile, the initiative is consistent with the EBRD’s activities in Egypt which supports the expansion of bus transportation, improving its quality, and improving access to transport.
In 2017, the company was founded as a start-up in Egypt and but then moved its headquarters to Dubai to pursue global expansion plans.
Swvl announced its intention to increase its market value to $15 billion in 2021, up from $1.5 billion at present, and to expand its investment activities in the Egyptian market based on the importance of its transport sector.
As of now, Swvl offers its services in 10 cities in six countries: Egypt, Saudi Arabia, Kenya, Pakistan, the UAE, and Jordan.
In July 2021, Swvl announced plans to go public through a merger with special purpose acquisition company Queen’s Gambit Growth Capital with a valuation of $1.5 billion.
The company has yet to announce when it will swing into action.
Funds raised from the listing will be used to accelerate the company’s plan to expand across 20 countries by 2025, according to the company.