M
obility company SWVL decided to completely cease operations in Pakistan after three years due to a global investment decline. On November 17, they initially shut down their intercity travel services and laid off staff. The next day, SWVL also halted its TaaS (transport-as-a-service) offering, which provided tailored transportation solutions for corporate clients, schools, and other organizations. While the company did not officially provide a reason for the closure, insiders pointed to the global downturn in investments as a likely factor.
SWVL had been operating with a high cash burn model, facing a precarious financial situation. For the six-month period ending June 30, 2022, the company reported net losses of $161.6 million and negative operating cash flows of $76.8 million. Despite generating revenue from several countries, including Egypt, Pakistan, Kenya, and others, only five of its top ten markets had turned EBITDA-positive or reached breakeven. SWVL remains focused on becoming cash flow positive by 2023. CEO Mostafa Kandil has not commented on the company’s decision to exit Pakistan.
