This archive report was first published on 29 August 2019.
SWVL, a leading shuttle-hailing firm, has made a significant move in the Kenyan market by announcing plans to invest $15 million (KES 1.5 billion) in its local operations.
According to the company's CEO, Mostafa Kandil, the financial injection will not only enhance their current services but also enable them to scale the business into other towns and routes.
Speaking at a press briefing in Nairobi, Mr. Kandil emphasized the potential of the Kenyan market, stating, “Kenya is a market with a need for a stable solution for the perennial traffic snarl ups and SWVL believes that we can be of great benefit to the local consumer and the transport sector as a whole.”
SWVL has already made significant strides in the Kenyan market, increasing its routes from four to fifty-five in just six months since its launch in February 2019. The company plans to add more routes to cover more areas in Nairobi and begin operations outside the capital city.
Shivachi Muleji, SWVL's General Manager for Kenya, highlighted the company's goal to fill a gap in the market, stating, “We are looking to fill a gap that has yet to be sufficiently covered by what is already available. That is what has prompted us to expand our route offering to match the convenience of ride-hailing services but at the same time matching the capacity provided by the traditional matatu industry for an even larger customer base than we have before.”
The investment is part of SWVL's larger growth strategy, which has seen the company recently close a $42 million Series B-2 funding round led by BECO Capital and Sweden's Vostok New Ventures. This increased the start-up's valuation to $150 million, making it one of the best-funded start-ups in the region.
