Swvl, Egyptian Startup Acquires Mobility Startup Urbvan, Opens Mexican Office

An deal to purchase Urbvan, a mobility platform that offers tech-enabled mobility services in Mexico, has been made public by Swvl Holdings Corp, a global mobility as a service provider.

The startup from Egypt will use this acquisition to expand into Mexico, the second most populous nation in Latin America.

One of the rare instances of acquisitions by African startups will be the one that is now underway and expected to be finished in Q3 of 2021.

The action comes after Swvl made the decision to fire 32% of its staff in May 2022, claiming the necessity to improve cash flow as justification.

For riders to have a secure, comfortable, and effective commute, Urbvan offers tech-enabled mobility services. In 2016, Urbvan was established with the goal of enhancing Mexicans’ quality of life through shared mobility. The business provides solutions for urban routes, intercity routes, private organizations, and private on-demand needs in 18 locations around Mexico.

Six years from now, Swvl will buy the business and use Urbvan’s networks to advance its aim to offer everyone, regardless of where they live, safer, quicker, smarter, and more economical mass transportation.

In a statement obtained by TechCabal, Mostafa Kandil, the founder and CEO of Swvl, emphasized the similarities between the two businesses while arguing that Urbvan’s presence in Mexico will be helpful and crucial to Swvl’s growth in the country.

“Urbvan was established with the same goals in mind as Swvl: to overcome the shortcomings of conventional mass transit that can be seen all over the world. This acquisition strengthens Swvl’s position as a leading provider of safer and more dependable mobility solutions, which are required for vulnerable people living in densely populated, difficult markets with vast geographies, he said. Swvl has a sizable footprint in Mexico, an impressive suite of transport-as-a-service (TaaS) offerings, and strong relationships with local government players.

Renato Picard, co-Founder and co-CEO of Urbvan, stated in a statement that Swvl and Urbvan “have a mission to remodel public transit to be safer for everyone, regardless of gender or social status, in the most difficult and densely populated metropolitan districts in Latin America.”

“We are thrilled to work with Swvl as we demonstrate best practices for technology-enhanced daily travel in Mexico. This deal puts Urbvan in a position to scale the platform both inside the region and beyond by utilizing Swvl’s extensive offers. We look forward to utilizing our combined abilities to offer reliable, cost-effective, and shared mobility choices everywhere in the world,” he continued.

Swvl, which went public in 2021, was the first African startup to go public via a SPAC and is currently valued at $1.5 billion.