Swvl, the UAE-based ride sharing firm, has decided to drop its plan to acquire Zeelo, the UK company.
The $100 million acquisition plan has been terminated because of a market downturn, and both the companies dropped the plan by mutual agreement, according to media reports.
“The deal that was agreed no longer made sense right for the parties, not just in terms of the transaction, but also in terms of the growth opportunity,” co-founder and CEO of Zeelo, Sam Ryan, said in a statement.
Swvl has recently announced a 30 percent reduction in headcount as part of plans to achieve profitability by 2023.
The company has also made four acquisitions since 2021 and is currently listed on Nasdaq.