Kolors Acquires Urbvan for US$12 Million

Kolors, a startup headquartered in Mexico City, has acquired the B2B van pooling provider Urbvan for a cash payment of US$12 million. The move aims to strengthen Kolors' presence within the Mexican transportation sector, augmenting its range of passenger mobility services.

Founded by Rodrigo Martínez, Kolors functions as an intermediary, connecting small and medium-sized bus operators with intercity bus passengers. The company operates with an asset-light model and deploys its personnel on buses to facilitate check-ins, handle cash payments and provide onboard services.

Urbvan, previously owned by Swvl, also operates an asset-light model, boasting a fleet of over 500 vans and shuttles. This acquisition positions Kolors to offer an all-encompassing door-to-door transportation solution, extending its services to corporate offices, business parks, factories and distribution centers within urban areas.

The combined Kolors-Urbvan service will be accessible in 40 cities throughout Mexico, marking a substantial increase compared to Urbvan's prior presence, limited to 24 cities. "The acquisition complements Kolors's digital mass mobility ecosystem, offering our passengers additional mobility options, particularly for business travelers. Urbvan passengers also become potential travelers for Kolors intercity bus network,” said Kolors' CEO, Rodrigo Martínez.

While Urbvan is reportedly a profitable business, the reasons behind Swvl's decision to sell remain undisclosed. However, sources familiar with the matter told TechCrunch that Swvl has been divesting parts of its international business over the past year due to financial challenges.

Kolors has secured US$20 million in funding from a consortium of investors, including Toyota Ventures, Up Ventures, Tuesday Capital, Maniv Mobility and Uber co-founder Garrett Camp. The company expects to transport more than 5 million passengers by the end of 2023. From a financial standpoint, Kolors anticipates achieving annualized revenue exceeding US$100 million within the next 12 to 18 months, largely attributable to the acquisition of Urbvan. Kolors also envisions leveraging Urbvan's existing client base to explore expansion opportunities in the US and other regions, with plans to make its international debut by late 2024.