Swvl Holdings, a global provider of transformative tech-enabled mass transit solutions, today announced that it is implementing a portfolio optimization program to enhance efficiency and reduce central costs to accelerate its path to profitability to turn cash flow positive in 2023.
Transport as a Service (TaaS) business, where Swvl provides technology-enabled transportation for corporates, schools, universities, industrial facilities, airlines and other institutional clients via its asset-light marketplace, and Software as a Service (SaaS) business where Swvl licenses its proprietary technology to transit agencies, bus operators and other high-capacity vehicles fleet owners and users, are both growing rapidly. They have now collectively crossed more than 500 live accounts across 4 continents with more than $5m monthly revenues. The recent closed acquisitions of TaaS and SaaS businesses Viapool, Volt Lines and Shotl and pending acquisition of door2door contribute to this growth.
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The Company’s portfolio optimization program will include the following:
- Continuation and organic and inorganic growth of TaaS and SaaS business across all geographies of operations including Germany, Spain, Italy, Switzerland, Turkey, Japan, Argentina, Saudi Arabia, United Arab Emirates, Jordan, Egypt, Kenya, and Pakistan;
- Focus of the Business to Consumer (B2C) business on Egypt and Pakistan, currently the Company’s highest B2C revenue contribution and profitability markets;
- Optimizing B2C route networks in certain cities as well as headcount and operating expenses; and
- Continued investment in developing the Company’s proprietary technology stack.
The Company expects to reduce its headcount by approximately 32%. Such reductions will focus on roles which have been automated by investments in the Company’s engineering and product and support functions. Swvl plans to provide monetary, non-monetary and job placement support to help with the transition of certain of its employees to new roles.
As a result of the portfolio optimization program, Swvl’s management currently expects that the Company will be cash flow positive in 2023.