Egypt’s Sawiris family leads $14.5 million bet on Swvl as transport startup expands into America

Swvl disclosed in a filing with the US Securities and Exchange Commission that it had entered two agreements to sell more than 10 million new shares to selected investors.

The first placement will raise approximately $13 million from Coefficient LP and HITE Hedge Asset Management. Coefficient, a Houston-based investment company backed by the Sawiris family, is contributing $10 million.

A second investor, Sofico Holdings, has agreed to purchase another $1.5 million in shares, taking the combined value of the proposed investments to approximately $14.5 million.

The first transaction is expected to close on August 27, while the Sofico investment is expected to close around August 28. Both remain subject to customary closing conditions.

Coefficient is set to become Swvl’s largest institutional shareholder when the transaction is completed. Its founder and managing partner, Abdalla Ali, will also join Swvl’s board.

The arrangement gives Coefficient more than an investment in the Nasdaq-listed company. According to Swvl’s regulatory filing, Coefficient will retain the right to nominate a director and participate proportionally in some future share sales for as long as it holds at least 5% of Swvl’s shares on a fully diluted basis.

It also secured consent rights over certain corporate decisions.

The investors have agreed not to sell their new shares for 180 days after the respective transactions close.

Swvl takes its African-built model to America

Swvl said it would use the proceeds to accelerate its recently launched US operations, strengthen its balance sheet and introduce a lending product for transport operators and partners using its network.

The company was founded in Cairo in 2017 by Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh. Its technology helps companies, schools and public institutions organise shared transport using existing buses and other vehicles.

Swvl later moved its headquarters to Dubai and listed on the Nasdaq stock exchange. It currently serves clients in Egypt, Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, the United Kingdom and the United States.

The latest investment follows years of expansion, retrenchment and restructuring at the company. Swvl reduced its consumer-facing operations and shifted its attention towards longer-term contracts with businesses and government institutions.

That strategy has improved its financial position. Revenue increased 41% to $24.2 million in 2025, while the company recorded net income of $1.3 million, compared with a $10.3 million loss in 2024.

However, Swvl ended 2025 with only $4.4 million in cash. The new investment is therefore significant relative to the company’s existing resources.

The improvement continued during the first quarter of 2026. Revenue rose 68% to $8.2 million, while revenue from Gulf countries more than doubled.

Recurring contracts generated 88% of total revenue, while the company reduced its quarterly operating loss to $170,000.

Onsi Sawiris said in Swvl’s announcement that his family was investing for the long term and supported founders building businesses with the potential to grow over several decades.

Swvl’s shares closed 50.3% higher at $2.21 on August 25 after the first investment was announced. The increase took its market value to approximately $22 million before accounting for the proposed new shares.

The fundraising will, however, dilute existing investors because Swvl is issuing new shares rather than selling shares already held by its founders or other shareholders.

The company will issue about 8.99 million shares at $1.446 each under the first placement and approximately 1.03 million shares at $1.46 each to Sofico.

The deal places an influential African business family behind Swvl as the company tries to prove that a transport technology model built in Egypt can compete in the much larger American market.