Mr. Ahmed Misbah. Image Credits: Swvl
Egypt-funded mass transit company, Swvl, has reappointed Ahmed Misbah as its Chief Financial Officer. Mr. Misbah, whose reappointment takes immediate effect, returns the company at which he held various finance roles including group finance manager, after a brief stay at Hotdesk, a startup founded by Mohamed Khaled, former Swvl director.
Mr. Misbah’s previous tenure at Swvl saw him play an instrumental role in ensuring the company listed on Nasdaq through a Special Purpose Acquisition Company (SPAC) transaction, combined with a $4.7 million private placement, and securing sustainable finance with HSBC. Misbah also led Swvl’s portfolio optimization plan, a plan whose profitability ahead of schedule the company boasted of. The company also revealed that Misbah was a crucial part of growing the company’s top line by more than 50% while reducing corporate overheads by over 25%.
Misbah returns to meet Swvl at a critical juncture. The startup has been struggling with financial storms as the company’s recent earnings report for the first half of 2024 showed a total loss of $10.4 million. This loss was primarily attributed to exchange rate volatility that has affected its foreign operations. This is especially the case in Egypt, where the currency has faced significant devaluation and high inflation.
Swvl reported revenues of $8.07 million for the six months ending June 30, 2024. This was a substantial drop from $11.12 million during the same period in 2023. The company also reported a net loss from continuing operations of $5.69 million, compared to a net income of $2.08 million a year earlier. Basic and diluted loss per share from continuing operations stood at $0.67, a sharp reversal from earnings per share of $0.32 and $0.25, respectively, in the previous year.
In the face of these challenges, Swvl’s cash and cash equivalents saw a slight increase to $1.18 million from $918,524 a year ago. The company has also streamlined its global operations, focusing on the UAE, Egypt, and Saudi Arabia after divesting subsidiaries in other regions.
Mostafa Kandil, Swvl’s CEO, showed his confidence in Mr. Misbah’s ability to lead the company’s next phase of growth. “His deep understanding of our business and his proven track record in accounting and finance makes him ideal for driving our next phase of growth while maintaining financial discipline and supporting our ambitious expansion plans,” Mr. Kandil said.
Mr. Misbah takes over Swvl ‘s chief financial officer (CFO) role from Youssef Salem, who is now the CFO of ADNOC Drilling. His appointment signals the company’s efforts to strengthen its financial capabilities, improve reporting timelines, enhance investor communications, and ensure financial resilience across its core markets. The company’s recent financial performance, however, underscores the challenges Mr. Misbah faces in his new role.
