Afrigather Swvl, the Dubai-based mobility firm, quietly filed its annual report for 2022 on Oct. 31 after beforehand lacking a NASDAQ deadline for submissions for publicly listed corporations on the inventory trade. The long-anticipated report supplies intensive particulars on the well being of the Cairo-born firm and its monetary efficiency because it chases profitability and sustainability with its novel bus-hailing mannequin in Africa and the Center East.
In 2022, the mobility firm doubled its income to $51.5 million, up from $25.6 million within the earlier 12 months. Swvl posted its first group gross revenue, $2.75 million, largely as a result of its income grew quicker than its primary value of working its fleet of buses. The corporate’s value of gross sales rose 55% to $48.7 million in comparison with the earlier 12 months.
The report represents a significant turnaround for Swvl, which has endured a turbulent life as a publicly traded firm. The corporate made its inventory market debut in March 2022 when it merged with Queen’s Gambit Progress Capital, a particular goal acquisition firm (SPAC), buying and selling at $10 per share at a $1.5 billion valuation. However its inventory collapsed afterwards, buying and selling beneath $1 for an prolonged interval as NASDAQ threatened to delist the corporate if its share value didn’t exit penny inventory ranges. Swvl accomplished a reverse stock split, which successfully consolidated its shares, changing 25 items into 1. That motion provided some reduction, however its share value has by no means returned to its SPAC itemizing quantity.
By late 2022, Swvl started making main adjustments to its enterprise, together with layoffs of 450 staff and shutting down operations in a number of international locations, which radically impacted its monetary data in comparison with particulars it reported by June 2022. Between mid-2021 and April 2022, the corporate introduced at the least 4 acquisitions because it expanded to new markets in Europe and Latin America. It acquired Shotl, a mass transit platform that operates on three continents; it additionally purchased a controlling stake in Viapool which served Argentina and Chile; in June 2022, Swvl took over German-based Blitz B22-203 GmbH; and in April 2022, it took a controlling stake in Volt Traces, a Turkish firm. And in August 2022, it acquired Latin American firm Urbvan in an all-share deal. Following, these acquisitions, by mid-2022, Swvl posted half-year income of $40.7 million throughout 20 international locations, practically thrice its earnings for a similar interval in 2021.
However by the tip of 2022, Swvl had efficiently reversed most of its acquisitions and shut down Blitz B22-203 GmbH. And in September, it offered Urbvan for $12 million. Unwinding these offers considerably modified the corporate’s scenario, inflicting it to reformulate its monetary statements and alter earlier enterprise projections. The reversals additionally helped it scale back legal responsibility publicity associated to a few of these acquisitions, together with funds to their suppliers.
As an organization, Swvl reported robust development because of its fast-growing bus-hailing providers to enterprise prospects. In 2022, it raked in $37.9 million from enterprise prospects, a 132% bounce from the earlier 12 months, in comparison with its mass transit providers which reported $13.6 million. General, Swvl booked 45.7 million rides throughout each companies final 12 months, up from 25.9 million in 2021.
The corporate claimed it processed $56.5 million value of journey tickets in 2022, in comparison with $38.4 million the 12 months earlier than. Swvl stated its buses had been full 96% of the time final 12 months, with a median ticket per seat of $1.23.
Regardless of its rising income and monetary adjustments from reversing earlier acquisitions, Swvl, whose CEO, Mostafa Kandil, earns a primary wage of $650,000 a 12 months, stays a loss-making enterprise. Swvl is but to show a revenue and in 2022 it posted working losses of $82.4 million, a 6.5% decline in comparison with the earlier 12 months. The corporate attributed a lot of its working bills to salaries and charges associated to one-time actions, specifically its acquisition reversals and charges from its SPAC itemizing in March final 12 months.
The most important takeaway from Swvl’s 2022 annual report is the corporate’s monetary well being. Earlier than making drastic adjustments to its enterprise final 12 months, Swvl reported complete liabilities of $149 million in 2021, together with $118 million in short-term convertible debt. By the tip of 2022, it had efficiently transformed a lot of its debt obligations into fairness, shaving liabilities value greater than $124 million. Swvl additionally raked in $20 million in fairness financing after it efficiently offered 12.1 million shares at $1.65 per share in August 2022.
These adjustments have considerably improved Swvl’s monetary scenario and it alleviates a lot of its enterprise pressures till it turns into a secure and worthwhile enterprise. Nonetheless, high-profile exits together with the substitute of its chief monetary officer and resignations of two board members over the previous few months would possibly elevate some eyebrows as Swvl’s CEO stabilizes the corporate’s operations.
