Swvl, a shared mobility service, has acquired European mass transit platform Shotl.
Terms of the transaction were not been disclosed but the deal gives Dubai-based Swvl a foothold in Europe.
Barcelona, Spain-based Shotl provides on-demand bus and van services to local governments and corporations filling transport gaps in underserved areas.
According to a statement the European company has a presence in 10 countries.
It adds that Shotl will leverage Swvl technology to optimize routes and maximize vehicle occupancy.
Mostafa Kandil, founder and CEO, Swvl, says: "Our two companies share the view that there is an urgent need to transform traditional public transportation to make it more accessible, convenient and sustainable. Shotl’s vision for the future of mobility, with an emphasis on electrification, the reduction of congestion and emissions, and affordability – is exactly what Swvl has already achieved in ten emerging market megacities and the reinvented model for public transit systems across the world.
"With Shotl's strategic relationships, rapidly growing user base and deep knowledge of its market landscapes, Swvl is meaningfully expanding its core markets, in line with our publicly stated growth objectives."
Gerard Martret, co-founder and CEO, Shotl, says: "As a company that has made significant strides in advancing sustainable mass transit over the past several years, we are confident that Shotl's market-leading technology and expertise will greatly contribute to the Swvl platform, advancing our mission to provide superior transportation alternatives for all."
Swvl recently announced it was combining with Queens Gambit Growth Capital for a public listing. The transaction proceeds were expected to be $445 million including $100 million of private investment.
Swvl said the funds would go towards its growth strategy of $1 billion in annual gross revenue and a presence in 20 countries by 2025.
The acquisition of Shotl takes Swvl presence to 16 countries putting it ahead of its plan, according to the company.
The company says it is looking out for further strategic initiatives to drive shareholder value. Swvl also recently announced a partnership with blockchain technology specialist Concordium.
The plan is to use blockchain to develop mass transit systems that improve the passenger experience while making public transport more environmentally friendly.