Dubai-Based Unicorn to go Public via SPAC Deal

Swvl Valued at $1.5 Billion

Swvl, a Dubai ridesharing company for emerging markets, is going public via a SPAC transaction with Queen’s Gambit Growth Capital (GMBT). The SPAC is led entirely by women, which is uncommon in the industry. Instead of focusing on individual ride-hailing services, Swvl, which was founded in 2017, offers mass transit in underserved markets.

Swvl uses algorithms and proprietary technology to determine the best routes for cutting down on emissions and costs. The deal values Swvl at around $1.5 billion, making it the largest unicorn out of the Middle East to trade on the Nasdaq. It is not yet clear when the transaction will be completed.

Swvl Aims to Disrupt Mass Transit

Swvl is trying to disrupt inefficient mass transit systems around the world. The company says that many public transportation systems cause congestion, reduce productivity, and hurt the environment. It wants to help solve these problems.

Swvl’s service is operational in 10 cities in the Middle East and Africa and it is eyeing more expansion into new markets. Since it debuted, 1.4 million riders have used the service to book around 46 million rides, and its sales hit about $26 million in 2020. That number is expected to increase to $79 million this year. The startup believes it has a $1 trillion opportunity in the global mass transit market, and wants to use its leadership position to capitalize on growth opportunities.

SPAC Deals Still Popular

As part of the deal, Queen’s Gambit CEO Victoria Grace and another executive from the SPAC will get seats on Swvl’s board. The female-led SPAC launched in January with $300 million to invest. In February it launched a second blank-check fund, Queen’s Gambit Growth Capital II (QWNBU).

Both funds are focused on deals with companies which are bringing sustainability to the energy, healthcare, mobility, and industrial sectors. SPAC deals gained momentum in 2020 and have remained popular in 2021. Last year, blank check companies raised $83.4 billion. This year they have already raised $115 billion. It will be interesting to see how SPAC deals unfold during the second half of the year.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

ABOUT Meg Richardson Meg Richardson is a writer specializing in markets, technology, and personal finance. She loves breaking down seemingly complex ideas and making them readable and interesting for everyone. She holds an MFA in writing from Columbia University. When she is not writing about finance, she enjoys running in Central Park and drawing cartoons.

TLS 1.2 Encrypted
Equal Housing Lender