Careem raises $200m in new funding

Dubai

Ride-hailing company Careem said it had secured $200 million (Dh734.4 million) in fresh funding from existing investors and that it expects to raise more to finance expansion plans. A source said the latest investment gave the ride hailing company an estimated valuation of over $2 billion.

Careem was estimated to be worth around $1 billion as of December 2016. Dubai-headquartered Careem said it expected to raise a total of over $500 million in its latest funding effort to expand into mass transportation, deliveries, and payments.

Internet-enabled services are having a profound and positive impact on our region, where the consumer internet opportunity is huge and untapped,” said Careem co-founder and Chief Executive Mudassir Shaikha in a statement.

Careem, founded in 2012, says it has 30 million registered users in over 120 cities in the Middle East, North Africa, Turkey, and Pakistan. The $200 million came from existing investors which includes Saudi Arabian billionaire Prince Al Waleed Bin Talal’s Kingdom Holding, Al Tayyar Group, STV, and Japanese e-commerce company Rakuten.

Careem counts German car maker Daimler and China’s largest ride-hailing company DiDi Chuxing as some of its other backers.

Careem has expanded into new markets this year such as Sudan and started trials on food delivery services after buying a restaurant listing and reservation online platform. Reuters reported in July Careem was planning to spend up to $150 million to launch its food delivery business following the acquisition of the RoundMenu restaurant platform.