EXCLUSIVE: SWVL CFO Talks SPAC IPO, Sustainable Mobility, And Finding Inspiration From Elon Musk

Zinger brief:

• Swvl SWVL CFO Youssef Salem hosted a Town Hall for retail investors on the Public.com app following the mass transit marketplace’s SPAC IPO.

• Salem shared insights into the Queen’s Gambit business combination, future global expansion, urbanization trends, and more.

 

Swvl SWVL, a tech-enabled mass transit marketplace platform, entered the public markets via a business combination with the female-led Queen’s Gambit Growth Capital on April 1, 2022. 

Following the SPAC IPO, Swvl’s Chief Financial Officer, Youseff Salem, answered questions from retail investors via Public.com. Here’s an exclusive recap of the Town Hall event for Benzinga readers.

Can you tell us more about the business combination with Queen’s Gambit? How did that come about and why do you believe it was the right fit?

Youssef Salem: It was a natural fit as Queen’s Gambit is a sustainability focused SPAC so fits perfectly with our mission. It is also all women led, the majority of our customers are women who favor Swvl for safety.

What changes should investors expect to see as Swvl goes from private to public following the recent SPAC IPO?

YS: Use of public currency for accretive M&A and top global talent, acceleration of path to profitability, increased global scale as all the proceeds from the transaction are used for growth (no secondary component).

What are the biggest priorities for Swvl in the next year?

YS: Being in every mega city globally, becoming profitable, reaching 1,000 engineers, product, mathematicians and data scientists to further enhance our proprietary and differentiated technology.

Which markets is Swvl in currently, and where do you expect to see the greatest growth?

YS: Europe, Latin America, Africa and Asia. We expect all existing regions to continue to grow rapidly while we launch in North America in parallel which will be another huge growth avenue.

What does the competitive landscape for mass transit tech look like, and how is Swvl differentiated from others in the space?

YS: Swvl is the largest pure asset light mass transit provider globally and the only asset light provider to have a full suite of services including intracity and intercity B2C, B2B and B2G across both emerging and developed markets. Key differentiators are the proprietary technology and the ability to cross utilize the same vehicles across all these services/forms of demand and hence offer more affordable prices than any of its peers.

How should investors think about Swvl’s product offerings?

YS: B2C intracity product for people going to work, school etc. B2C intercity product for people who commute between cities for work or vacations. B2B product for corporates, universities, schools looking to move their employees and students. B2G product for transit agencies looking to run their own operations using the Swvl technology.

What are some of the trends in urbanization and mass transit that you’ve seen at Swvl?

YS: Climate change has been a key driver of renewed focus on pooling and mass transit. We have a number of top climate investors who are invested in Swvl as it substantially reduces the number of vehicles on the road. We were pleasantly surprised by the rebound from COVID-19 where more people are looking for both safe and affordable rides which is exactly what Swvl offers.

What does “sustainable mobility” mean?

YS: Sustainable for the environment by maximizing sharing, sustainable for the captains (drivers) by moving away from the commission model into recurring earnings, sustainable for the riders by being 80% cheaper than ride hailing and sustainable for cities and transit agencies by increasing utilization of the vehicles and hence reducing costs/losses.

Will your company need to spend capital on improving the infrastructure in major cities you will service?

YS: We are completely asset light and don’t have any CapEx (capital expenditures) or any sort or own any vehicles. We leverage the underutilized public and private sector bus capacity to offer improved services and lower prices for riders and higher earnings for captains.

Do you keep up with what Elon Musk is attempting to do with the underground tunnels in LA?

YS: Musk is an inspiration for us. His constant focus on sustainable and futuristic solutions is fascinating.

Public.com members can view the full Q&A in the app. Open To The Public Investing is a member of FINRA and SIPC. This content is not investment advice. Investing involves risk of loss.