Swvl's million-dollar smart bus startup acquisition has been canceled. The tech-enabled mass transit solution provider confirmed that the deal between it and Zeelo, a U.K.-based bus platform, will no longer continue.
Previously, Zeelo and Swvl confirmed that the acquisition, which was estimated to cost $100 million, back on Apr. 28. They said that their partnership will be completed on May 24.
However, there were no updates after the provided deadline. Now, Zeelo and Swvl announced that their transaction has been terminated.
Swvl's Million-Dollar Smart Bus Startup Acquisition Canceled!
According to TechCrunch's latest report, their various reasons why the acquisition deal was canceled.
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To clarify things, both of the companies agreed to terminate the partnership, allowing the cancellation to go smoothly.
Zeelo explained that among the reasons behind the termination is the falling stocks of Swvl. Both of the startups said that the deal no longer makes sense because of the collapsing tech markets.
Recently, MarketWatch reported that Swvl's shares declined by around more than 15% after announcing its other acquisition plan, which specifically involves Urbvan Mobility.
"I think the market conditions have changed. We're still in a great place, the businesses is growing really, really quickly," said Zeelo CEO Sam Ryan.
He explained that the deal termination is not bad news at all, claiming that their company is protected from the public market changes.
Zeelo Experiences Business Growth
While Swvl is affected by the falling tech markets, Zeelo seems is experiencing massive business growth. Experts even claimed that the acquisition cancellation is the best move that the smart bus startup can think of.
Zeelo claimed that it is seeing continued growth in its businesses in South Africa, the United States, as well as the United Kingdom.
As of writing, the company is enhancing its private rides for commuters and students. Aside from this, Zeelo was also able to raise more than $19 million in funding from ETF Partners, InMotion Ventures, and other investors.
Meanwhile, GM and LG announced that they will construct three EV factories in the U.S.
Meanwhile, Rivian's workforce has been reduced by 6% because of EV production challenges.
For more news updates about Swvl and other companies in the tech markets, always keep your tabs open here at TechTimes.
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Written by: Griffin Davis
