• Swvl secures USD 2M in additional funding through the selling of pre-funded warrants by investors.
• The company plans to use the funds for working capital, corporate expenses, and expanding its operations to the US.
• Investors agreed to a six-month lock-up period, with restrictions on selling more than 20% of shares every 90 days.

Pre-Funded Warrants

Swvl Holdings Corp (SWVL), a mobility solutions provider, announced that investors have exercised their right to purchase additional securities  valued at USD 2 million of pre-funded warrants. 

This follows a prior agreement from November 2024, allowing investors to purchase these warrants for $4.79 per share in a private placement. The private placement, the sale of securities to select investors, officially closed on February 7, 2025. As part of the deal, investors agreed to a six-month lock-up period, during which they cannot sell the securities. After which, they can begin selling a limited portion of less than 20% of their holding every 90 days, with each sale limited to 20% of the stock trading volume on the given day. 

What are pre-funded warrants? They are a type of financial instrument that allows investors to buy shares of the company in the future usually at a lower cost.

Swvl sees the lock-up agreements and selling restriction as a sign of investor confidence in its long-term growth strategy. .

Expansion

Swvl aims to utilize the investment for working capital, general corporate expenses and expanding its operations in the United States. In short, the company views this investment as a financial boost, vote of investor confidence, and a push for international expansion.

This follows Swvl’s recent developments, including securing multi-million dollar contracts across Egypt, Saudi Arabia and the UAE. As well as financing from HSBC to support its sales pipeline. The company is also aiming to accelerate its growth in both the United States and the GCC.  This new USD 2 million investment builds on the previously announced  USD 4. 7 million private placement in November 2024. 

It is worth noting that in May of last year, Swvl announced achieving net profits and cash flows for the fiscal year 2023, estimated at approximately USD 3.1 million.

Ultimately, Swvl aims to continue to strengthen its financial position and expand its global footprint whilst maintaining investor confidence.