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    ‘We Were Targeting Markets in America and the UK, Thinking They Were Bigger’ — SWVL Founder on Failed Acquisitions

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    Mostafa Kandil is the co-founder and CEO of SWVL, an Egyptian startup focused on transforming urban mobility. SWVL, a platform designed to innovate public transportation in major cities, was launched by Kandil in 2017 while he was still a university student in Cairo. Recognizing shortcomings in the local public transport system, Kandil, along with his friends, set out to create a solution. In 2021, SWVL gained significant attention when it went public on the U.S. stock market through a Special Purpose Acquisition Company (SPAC). However, the company has since encountered challenges, including a steep decline in market value. In a recent interview with Moghamra Studios, covered by Launch Base Africa, Kandil shared personal insights into his journey with SWVL.

    ‘No one handed me money — I’ve always had to earn it myself.’

    “I’ve been hustling my entire life. I came to the U.S., and when I entered the American corporate world, I realized I was just average compared to the people around me. They were doing things I hadn’t even heard of at that time. It was a wake-up call, and it pushed me to work even harder. I was very impressed by companies like Google — I really wanted to join them, but I got rejected at the final interview. That rejection made me even more determined. I decided to challenge myself, and every day, I strived to improve. I learned from my mistakes, and I grew stronger.”

    “No one handed me money — I’ve always had to earn it myself. Some people might say, ‘If you have a million dollars, just relax and enjoy life,’ but that’s not how I operate. I firmly believe in working hard, and I’m proud of the things I’ve built through my efforts. I’m determined to continue, just as I have for the past two decades, focusing on progress and success. I believe in continuous growth and pushing beyond my limits. Every morning, I wake up with a mission to improve, to excel. I don’t settle — I aim for the best, whether in business or in life.”

    The SWVL Idea ‘Wasn’t Necessarily Unique.’

    “The idea wasn’t necessarily unique. I noticed there were gaps in the market, opportunities that others weren’t addressing properly. I wanted to build something adaptable, a solution that could scale and meet specific needs. I was very determined to outwork everyone, to create something different.”

    “I’m not ashamed to admit that I’ve taken ideas from others and improved upon them. It’s not about copying — it’s about executing better and making something extraordinary out of it. Innovation isn’t always about creating something entirely new; sometimes, it’s about taking an existing idea and doing it better.”

    “Yes, the initial stages were tough. We had to be very resourceful and focused. It wasn’t just about surviving but about strategically positioning ourselves to grow. We invested a lot of time and effort into making sure our execution was flawless.”

    “Our success came from relentless focus on execution and constantly adapting to the market’s needs. We learned from every setback and used those lessons to improve. It wasn’t just about the idea but how we implemented it.”

    “I think other companies tried to do the same thing, but they all failed. I believed I could do it better and execute it more effectively. The idea of organizing a public transportation system isn’t original; a lot of research has been done on it, and a lot has already happened in this space. Even the concept of Uber isn’t original; it’s just that Uber executed it in a way that others didn’t.”

    “It was about proving that we could do it better than anyone else. The drive to succeed and the belief that we could outwork the competition kept us going. We knew that if we executed well, we could build something lasting.”

    “My advice would be to focus on execution. Ideas are important, but they need to be adapted to the real world and executed with precision. Be ready to outwork everyone and learn from every challenge you face. It’s about being resilient and staying committed to your vision.”

    ‘The question is, can you compete?’

    “If we’re talking about profitability across all markets, I doubt the Egyptian market alone can sustain that level of profitability, even if they really push hard.”

    “The question is, can you compete? If you’re just aiming to be profitable in one place, it’s not going to work. The market is volatile, especially in logistics. Are you ready to enter this tough battle again, especially with big players already dominating?”

    “We need to strategize properly. It’s not just about survival; it’s about achieving sustainable growth. We need to win markets and be profitable, or else we’re just burning money. It’s very difficult to manage profitability when you’re expanding rapidly, especially in multiple regions. You need to hire the right talent, and it’s challenging to find experts who understand these markets well.”

    “Indeed, building a competitive edge in this market is tough. We’ve tried hiring experts from Jordan and other places, but it’s very challenging. The market is extremely competitive, and it’s not straightforward to achieve what we want. But if we’re serious about succeeding in the region, we have to overcome these challenges. We can’t just give up because it’s difficult.”

    “We have to keep pushing and figure out ways to overcome these challenges, even if it takes years. We can’t afford to back down now; the stakes are too high. We need to make this work, even if it means making sacrifices. It’s not just about profits; it’s about securing our place in the market.”

    ‘It’s not easy at all, but I learned a lot’

    “Yes, the struggles… the challenges I’ve faced… it’s not easy at all, but I learned a lot, even if it wasn’t easy. You might be spoiled, pampered, and face low points, but at the end of the day, you have to face the challenges and overcome them.”

    [Take for instance, the liquidation by SWVL that happened after the IPO:] “We were trying to push through, thinking about the IPO. We were trying to sell because they needed to liquidate. They [investors] were desperate to get their money back, and I was trying to redeem some cash. They needed to sell to get their money out. A friend tried to help, but it wasn’t enough. The situation was difficult, and they were thinking about the value they had paid. The price wasn’t great, but we had already committed. It was a situation where we had to sell.”

    “The market was down 70%, Facebook was down 90%, and we were struggling to sell. There were no buyers in the market, and we were trying to stay afloat. We were struggling with everything, and the market conditions were tough. We were desperate to sell, but it was an uphill battle.”

    “If I could go back (on the acquisitions by SWVL), I would choose better markets. But we didn’t know what we were doing back then. We were targeting markets in America and the UK, thinking they were bigger, but we didn’t realize the challenges we would face. We were locked into our strategy and didn’t see the bigger picture. This wasn’t just a market problem; it was a deeper issue. We should have known better, but we were too focused on the wrong things.”

    “I wish everyone to reach their dreams, even if it’s difficult. It’s something that you need to fight for…”

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