Egyptian mobility company Swvl Holdings Corp has agreed to a $13 million private placement led by Coefficient LP, a U.S. investment firm backed by Egypt’s Sawiris family, as the mobility company founded by entrepreneur Mostafa Kandil prepares to expand in the United States.

Coefficient will invest $10 million in the offering, while an existing Swvl shareholder will invest another $3 million. Once the transaction closes, Coefficient will become Swvl’s largest institutional shareholder.

The investment also brings a change to Swvl’s board. Abdalla Ali, Coefficient’s founder and managing partner, will join the board as part of the agreement. Swvl will issue 8,990,317 Class A shares at $1.446 each. The transaction is expected to close Aug. 27, 2026, subject to customary closing conditions.

Swvl posts stronger first-quarter results

The investment follows a stronger first quarter for Swvl, with revenue rising 68 percent from a year earlier to $8.2 million. Revenue from the Gulf Cooperation Council increased 111 percent, while recurring revenue accounted for 88 percent of the total.

Net dollar retention reached 114 percent, and dollar-pegged revenue rose to 44 percent of total revenue. Swvl also reduced operating expenses to 23 percent of revenue as the company moves closer to operating breakeven.

The company said it plans to use the proceeds to expand its U.S. operations, launch its lending offering for transport operators and partners in its network, and strengthen its balance sheet as it pursues more multiyear contracts with businesses and governments.

Kandil targets U.S. expansion

Kandil said the funding gives Swvl additional capital and access to investors with established ties in the United States and the markets where the company already operates.

“We believe that our results demonstrate that Swvl’s enterprise-first model can scale profitably,” Kandil, Swvl’s founder and chief executive officer, said. He pointed to the company’s 68 percent revenue growth in the first quarter and operating expenses of 23 percent of revenue as evidence of the model’s progress.

“With this investment, we have partners with deep roots in the United States and across our existing markets,” Kandil said. He added that Ali’s appointment to the board would give Swvl additional experience as it develops its U.S. business.

Swvl gains Sawiris family backing

Onsi Sawiris, whose family backs Coefficient, said the investment reflects the family’s preference for backing founders building businesses for the long term.

“Mostafa and his team have built a disciplined technology operator serving enterprises and governments across seven countries,” Sawiris said. He said Swvl’s business model and planned expansion provide a strong base for its future.

Ali said Coefficient sees an opportunity to use technology to improve how public and private transportation systems operate. “Mass transportation, the system that moves people, has lagged behind in most cities around the world,” Ali said. He described Swvl’s platform as a way to help businesses and governments manage existing transportation capacity more efficiently.

Ali said the company uses artificial intelligence and other technology to manage transportation networks without having to build or add large fleets. “I look forward to working alongside the board as the company builds its American business,” Ali said.

From Cairo startup to global operator

Kandil and fellow Egyptian entrepreneur Ahmed Sabbah founded Swvl in 2017 with a focus on easing traffic congestion in Cairo.

The company has since expanded its technology platform to serve businesses, government institutions, schools and health care providers. Its operations span Egypt, Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, the United Kingdom and the United States.

Swvl uses real-time data and technology to manage transportation services for organizations and government agencies. The company says its platform is designed to provide safer, more reliable and more sustainable transportation while making better use of existing capacity.