Swvl to “carefully expand” in Saudi Arabia in 2024
The Dubai-based provider of tech-enabled mass transit solutions, Swvl, has met its operational targets for 2023, achieving profitability, according to the company’s Chief Financial Officer, Youssef Salem.
Ramping-up operations
In an interview with Daily News Egypt, Salem revealed that the company is rehiring previously laid-off employees, and is implementing a plan for careful expansion in various markets, particularly in Saudi Arabia.
In 2022, the company reportedly cut nearly one-third of its workforce to achieve profitability and lower operating costs, as part of its strategy to reach profitability in 2023 instead of 2024 as originally planned.
Swvl adopted technology-driven operational and administrative measures to enhance workflow efficiency and operational performance, contributing to the acceleration of its path to profitability.
According to Salem, Swvl’s existing service lines were already profitable. However, expansion efforts required investments until these lines became profitable.
In response, the company scaled down its expansion plans in 2023, discontinuing certain lines and concentrating on those already yielding profits, in line with its revised target to generate profits by 2023.
Financial results
Swvl registered operating cash flows of $2.2 million in the first half of 2023 (H1).
Meanwhile, net profit reached $2.1 million, marking a significant turnaround from the $161.6 million loss registered in H1 2022.
Operating profit for H1 2023 amounted to $13.4 million, in contrast to operating losses of $56 million recorded during the corresponding period in 2022.