Swvl backs out of Zeelo acquisition deal, citing financial market volatility

Swvl backs out of Zeelo acquisition deal, citing financial market volatility 

By: Abu Dhabi SME Hub
News

The acquisition transaction was announced on April 28, 2022, and was expected to close on May 24, 2022.

Zeelo, the UK's largest smart bus platform with live operations in three continents, has announced the termination of its previously-announced transaction with Swvl Holdings Corp, the UAE-based global provider of tech-enabled mass transit solutions. 

The acquisition transaction was announced on April 28, 2022, and was expected to close on May 24, 2022. At the time, it was Swvl's fifth announced acquisition, as part of the UAE company's push for growth and expansion.

According to Zeelo, all pre-completion obligations were met, but following financial market volatility, Swvl and Zeelo mutually agreed to terminate the planned transaction. While it has achieved significant growth since its inception in 2017, Swvl has yet to achieve profitability, and it might have bit off more than it can chew by announcing so many acquisitions in the span of a year. The termination of this deal follows the company's announcement in May that it would also be reducing its headcount by approximately 32%. 

Zeelo, which has seen over 1000% growth since the start of 2020, will continue to focus on profitable growth in developed markets, in particular the UK, South Africa and the US, to provide sustainable rides for commuters and students based in transport-poor areas. The company currently transports over 150,000 riders each month, serving over 150 clients in the Corporate and Education space.

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