Swvl Holdings Corp, the Egypt-founded mobility solutions provider, has reported a net loss of $15.14 million for the fiscal year ended December 31, 2024, widening significantly from the $2.24 million loss recorded in the previous year. The sharp downturn reflects a combination of currency devaluation, corporate expenses, and listing costs, despite efforts to streamline operations and focus on profitable markets.
The company’s B2C revenue for FY 2024 stood at $4.23 million, marking a 32% year-on-year decline. Similarly, B2B revenue fell by 22% to $12.98 million. The reductions stemmed from a strategic shift towards optimizing the most profitable and utilized routes, coupled with contract terminations under Swvl’s portfolio optimization plan. Additionally, the sharp devaluation of the Egyptian pound (EGP), which lost approximately 63% of its value against the US dollar during the period, further dampened reported revenue figures.
Despite these setbacks, Swvl maintained that its core markets remained profitable, generating sufficient cash flow for daily operations. The company emphasized its ongoing efforts to bolster financial sustainability, including securing a working capital line to maintain liquidity in the Egyptian market if needed.
Swvl’s cost of sales fell by 28% to $13.56 million, reflecting the company’s focus on operational efficiency and technological advancements. However, on a constant currency basis, assuming an exchange rate of EGP 30.66 per USD (the average for FY 2023), B2C and B2B revenues would have been reported at $6.07 million and $17.01 million, respectively. Under these conditions, total revenue would have been $23.08 million instead of the reported $17.21 million, illustrating the extent of the currency impact.
As of December 31, 2024, Swvl held cash and cash equivalents of $4.96 million, up from $2.92 million a year earlier. The company attributed this to its emphasis on efficient cash management, alongside selective external fundraising efforts.
Swvl has gradually shifted its funding model, relying more on cash flows from operations rather than equity issuances to minimize shareholder dilution. The company also acknowledged potential future equity issuances under employee incentive plans, public market offerings, or acquisitions, though such actions could lead to significant dilution of existing shareholders.
Expansion and Market Strategy
Swvl currently operates in Egypt, Saudi Arabia, and the UAE, with its headquarters in Dubai and Riyadh. In late 2024, it relaunched services in the UAE, securing four new corporate customers. The company views the UAE as a high-growth market, benefiting from government-backed infrastructure investments and a technology-driven mobility landscape.
Looking ahead, Swvl plans to expand into the United States, targeting major urban centers such as Texas and Chicago. The company believes these markets offer better pricing power, higher margins, and potential government incentives for sustainable transport solutions. Meanwhile, in the Gulf Cooperation Council (GCC) countries, Swvl aims to leverage its existing client base in Egypt and Saudi Arabia to enter markets like Kuwait and Qatar.
Swvl has equally undertaken significant restructuring efforts under its Portfolio Optimization Program. This involved the sale of its Pakistani subsidiary for $20,000 in April 2023 and the liquidation of operations in Kenya, Jordan, and Malaysia. In addition, Swvl divested its stakes in acquired entities such as Viapool in Argentina, Door2Door in Germany, and Volt Lines in Turkey.
Swvl remains subject to currency volatility, particularly in Egypt, where economic uncertainty continues to pose challenges. The company is actively exploring expansion in dollar-pegged markets to mitigate this risk while enhancing its SaaS and TaaS offerings to drive revenue diversification.
Despite posting a profit of $3.06 million in FY 2023, Swvl’s shift back into losses in FY 2024 highlights the difficulty of navigating inflationary pressures and foreign exchange fluctuations. With operational restructuring efforts underway, the company’s ability to maintain liquidity and sustain profitability remains a key area of focus for investors and stakeholders.