Dubai-based super app Careem announced on Monday that it has received a $400 million investment from technology and investment group e& for a 50.03% majority stake. The company also secured investments from its parent company Uber as well as its three co-founders, but the amount of that hasn’t been disclosed.
‘’I am delighted to announce that we have secured $400 million in investment from e&, the global technology and investments group,’’ said Careem Co-founder and CEO Mudassir Sheikha in a statement. ‘’This investment will turbo-charge our Super App vision and restart our entrepreneurial journey to build the preeminent technology platform of our region. In Uber and e&, we now have two exceptional partners to help us get there.’’
Following the transaction, Uber, which acquired Careem for $3.1 billion in March 2019, will fully own the company’s ride-hailing business Careem Ride.
Careem Technologies, on the other hand, will be owned jointly by e&, Uber, the three co-founders, and its team members. They will focus on enhancing the super app’s wide range of services, including food delivery, grocery delivery, item delivery, sending and receiving payments, home cleaning, and bike rentals.
‘’Our new investor and partner, e&, shares our passion for the region, for technology, and is on an ambitious mission of its own to transform from being a Telco to a TechCo’’, Sheika said. ‘’There is almost perfect alignment of vision, large overlap in geographic footprint, and enormous demand synergies in their 162m customer base. It is safe to say that we could not have found a more aligned and resourceful partner than e& to join us on this journey.’’
Hatem Dowidar, Group CEO of e&, commented: “The Careem Super App, is a digital native that has built a rapidly growing payments, food and grocery delivery network, and a platform for other digital businesses to scale from. The shared vision between e& and Careem is exciting, we believe that together we’ll be able to enhance our impact across different markets in the region while pushing the boundaries of customer experience.”