In the high-stakes world of mobility startups, few have experienced swings as dramatic as Swvl Holdings Corp. The Nasdaq-listed company, which provides tech-enabled mass transit solutions, has just reported something remarkable: a $0.8 million net profit for Q1 2025. This comes just months after posting a devastating $15.14 million loss for 2024 — a year that nearly broke the company. This report of profitability for SWVL marks a major turn of events for the startup.

The Perfect Storm of 2024

Last year represented a crisis point for Swvl. The Egypt-founded company, which had expanded aggressively across the Middle East, Africa, and Latin America, found itself caught in an economic maelstrom.

The primary culprit? Egypt’s currency collapse. When the Egyptian pound lost 63% of its value against the U.S. dollar in early 2024, Swvl’s revenue — much of which was earned in local currency — was decimated overnight. Reported B2C revenue fell 32% year-over-year to $4.23 million, while B2B revenue dropped 22% to $12.98 million.

“The currency devaluation was catastrophic for SWVL’s financial reporting,” a markets analyst with Launch Base Africa says. “In constant currency terms, SWVL was growing. But on paper, it looked like its business was shrinking.”

Compounding these problems were the costs of maintaining Swvl’s Nasdaq listing and the lingering expenses from its earlier global expansion spree — including operations in Pakistan, Kenya, and Jordan that were ultimately shuttered.

The Turnaround Strategy

Facing existential threats, Swvl’s leadership implemented a brutal but effective survival plan:

The Great Retreat

The company exited five markets in 2022–2023, selling subsidiaries for nominal sums. Its Pakistani operations went for just $20,000. “We had to triage,” said CEO Mostafa Kandil. “It was about conserving cash and focusing on where we could win.”

Dollarization

Swvl aggressively pivoted toward dollar-pegged contracts, particularly in Saudi Arabia and the UAE. By Q1 2025, 34.7% of revenue was dollar-linked — a 118% increase from 2024.

From Rides to Recurring Revenue

The company shifted from consumer-facing services to long-term contracts with corporations and governments. Recurring revenue now comprises 86% of the total, up from 76% last year.

Egypt 2.0

Rather than abandoning its home market, Swvl restructured its Egyptian operations around premium services and local-currency cost management.

The Road Ahead

While Swvl’s Q1 profit marks a significant milestone, challenges remain:

• The company’s cash reserves, while improved at $4.96 million, leave little margin for error.
• Planned expansion into the U.S. (targeting Texas and Chicago) pits it against well-funded rivals like Uber.
• Egypt’s economic instability continues to pose risks.

“Swvl’s turnaround is impressive but fragile,” our markets analyst notes. “2024 taught SWVL hard lessons about volatility. They’ve shown discipline in cutting costs, but real success will depend on finding growth without reigniting losses. In summary, it appears they are longer just chasing growth at all costs anymore.”

As Swvl prepares to resume quarterly reporting, investors will be watching closely to see if this mobility upstart can maintain its newfound balance between growth and profitability.

Key Financials

Sources: Swvl SEC filings