Techawk

Entrepreneurship, Innovation and Startups News Hub

Swvl

Zeelo and Swvl Announce Termination of Acquisition Agreement

Zeelo, a UK smart bus platform with live operations in three continents and strong growth, has announced the termination of its previously-announced transaction with Swvl Holdings Corp, a global provider of tech-enabled mass transit solutions

The acquisition transaction was announced on April 28, 2022, and was expected to close on May 24, 2022. All pre-completion obligations were met, but following financial market volatility, Swvl and Zeelo mutually agreed to terminate the planned transaction. At the time of the agreement, Swvl’s share price was around $8 to $9 but today it is about $1.64.

Zeelo, which has seen over 1000% growth since the start of 2020, will continue to focus on profitable growth in developed markets, in particular the UK, South Africa, and the US, to provide sustainable rides for commuters and students based in transport-poor areas.

Zeelo taps into a developed market’s opportunity to modernise shared mobility which is worth US$40 billion. The company currently transports over 150,000 riders each month, serving over 150 clients in the Corporate and Education space.

Earlier in May, the Nasdaq-listed company sacked 30 percent of its employees, as part of its plans to achieve profitability in 2023. A month later, it halted its operations in Kenya and Pakistan as well as suspended a number of routes in its home market of Egypt.