More
    HomeEcosystem NewsEgyptian Transport Startup Swvl Records $12 Million in Operating Profit, After Acquisition...

    Egyptian Transport Startup Swvl Records $12 Million in Operating Profit, After Acquisition Spree Losses

    Published on

    spot_img

     Swvl Holdings Corp (Nasdaq: SWVL), an Egypt-born global provider of mobility solutions for businesses and governments, announced a significant turnaround in its financial performance for fiscal year 2023. The company achieved positive net profit and cash flow for the full year, despite incurring losses from previous acquisitions.

    Swvl successfully completed its profitability program initiated in 2022. While the company recorded $8.2 million in losses from subsidiary sales, it achieved a net profit of $3.1 million, a significant improvement from a net loss of $123.6 million in 2022. Gross profit grew eightfold to $4.1 million from $0.5 million in 2022, and operating profit reached $12.1 million compared to an operating loss of $80.2 million in the prior year.

    Swvl’s strong balance sheet reflects its financial stability. The company ended the year with no debt and its equity value more than doubled to $5.9 million compared to $2.6 million in 2022.

    “Our team’s dedication and focus on financial stability resulted in profitability,” said Swvl CEO Mostafa Kandil. “We are committed to innovation and plan to launch new products in upcoming markets while expanding strategic partnerships in the GCC countries.”

    Swvl’s Nasdaq journey has been volatile. After delisting from the Nasdaq Global Market to the Nasdaq Capital Market in July 2023, its share price plummeted from a high of $9.95 to $0.84. Despite efforts like share consolidation and divesting Urbvan, a Mexico-based acquisition, the company’s share price remained low.

    However, the recent profitability announcement has boosted investor confidence, with Swvl’s shares now trading at $10. In December 2023, the company reported a shift in operating profits from a loss of $56.0 million to a profit of $13.4 million, despite a decrease in revenue.

    Swvl’s sale of Urbvan Mobility for $12 million, a fraction of the $82 million acquisition price in July 2022, raised questions about its financial strategy. The fire sale highlights the challenges faced by the company in the competitive mobility tech sector.

    Despite the Urbvan setback, Swvl maintains that its acquisition strategy was beneficial. Kandil explained, “We acquired companies using stock, not cash. We paid a fixed price per share, resulting in a profit on each acquisition. While some companies were divested, others played a crucial role in our growth.”

    Latest articles

    Europe’s Largest Private Pharma Channels $50m Fund Into African Health Startups

    Launched in 2021, it provides non-traditional financing models—such as concessional loans and revenue-based investments—to plug the financing gap for early-stage social businesses beyond what conventional grants or equity rounds can offer.

    Tactful Founders Buy Back AI Startup from Belgian Telecom Group Three Years After Acquisition

    The deal marks a quiet but significant pivot in Tactful’s trajectory — from European acquisition back to homegrown independence.

    With New Egypt Fintech License in Hand, MaxAB-Wasoko Charts Deeper Fintech-Led Future

    The Egyptian startup's Central Bank approval marks a deeper pivot toward fintech as the MaxAB-Wasoko group recalibrates across African markets.

    Former Fraudster Hired by Mistake: Egyptian Fintech Faces Insider Wallet Theft Scandal

    The incident has raised serious questions about hiring and offboarding protocols within Africa’s rapidly expanding fintech sectors.

    More like this

    Europe’s Largest Private Pharma Channels $50m Fund Into African Health Startups

    Launched in 2021, it provides non-traditional financing models—such as concessional loans and revenue-based investments—to plug the financing gap for early-stage social businesses beyond what conventional grants or equity rounds can offer.

    Tactful Founders Buy Back AI Startup from Belgian Telecom Group Three Years After Acquisition

    The deal marks a quiet but significant pivot in Tactful’s trajectory — from European acquisition back to homegrown independence.

    With New Egypt Fintech License in Hand, MaxAB-Wasoko Charts Deeper Fintech-Led Future

    The Egyptian startup's Central Bank approval marks a deeper pivot toward fintech as the MaxAB-Wasoko group recalibrates across African markets.