The Egyptian transportation service Swvl raised $42 million as part of its plans to expand into other Africa countries.
“The plan is to expand the business in two or three more African cities by the end of this year,’’ CEO Mostafa Kandil said, adding that “Lagos, Nigeria, is most likely our next target.”
Kandil, an engineering graduate, who was a former employee at Careem noted that Swvl carries hundreds of thousands of clients each month.
Last year, both Uber and Careem launched bus services in Cairo. Along with Swvl, both companies are utilizing the city’s growing demand.
Transportation services have become profitable in Cairo, which inhabits more than 20 million people. Swvl is cheaper than taxis, yet, more comfortable and accessible than public transportation.
“We seek the middle and upper middle classes, a segment, who don’t actually use public transportation,” Kandil said.
Founded in Cairo, the two years old company operates in Alexandria and Nairobi in Kenya.
The founders raised the capital from venture-capital firms including Sweden’s Vostok, Dubai-based BECO Capital, China’s MSA and Endeavor Catalyst, based in New York.