Careem Spinout Secures $400 Million Investment from UAE Tech Holding Company e& With Support from Uber
Careem, the Dubai-based ride-hailing company that was acquired by Uber in 2020, has secured a staggering $400 million investment from UAE-based tech holding company e&. This news comes following the announcement of a new partnership between e& and Uber in the region, which will see the global ride-hailing giant expand its services across the Middle East and Arab world.
What is Careem?
Founded in 2012, Careem was one of the first ride-hailing companies to emerge in the Middle East, and quickly established itself as the dominant player in the region. Despite facing stiff competition from Uber, which entered the market in 2013, Careem managed to retain its leading position thanks to its deep understanding of the local culture and consumer preferences.
What is e&?
e&, the investing arm of Sharjah-based Emirates Investment Authority, is one of the most high-profile tech investors in the Middle East, having previously invested in companies like Souq.com and Kharabeesh. The firm focuses on investing in innovative startups that have the potential to disrupt industries and create new opportunities in the region.
The $400 million investment from e& will be used to create a new company, which will serve as a spinout from Careem. The as-yet-unnamed company will focus on digital payments and is aimed at becoming the leading player in the sector across the Middle East and North Africa. The new company will be led by Careem co-founder and former CEO Magnus Olsson.
Support from Uber
While the investment comes from e&, it is worth noting that Uber played a key role in securing the deal. The global ride-hailing giant supported Careem throughout the negotiations and provided advice and resources to help bring the investment across the line. This is a strong indication of the ongoing collaboration between the two firms, which will continue to work together to bring new services to the region.
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Dubai-based ride-hailing company Careem has secured $400m in funding from UAE-based tech holding company e&, with support from Uber. The investment will be used to create a spinout from Careem focused on digital payments and led by co-founder and former CEO Magnus Olsson. The deal highlights the close collaboration between Careem and Uber, which will work together to expand services across the region.