By Staff writer
Ride-hailing app working with Credit Suisse to secure financing to spur growth
Ride-hailing app Careem is close to raising $300 million in its latest fundraising round, Bloomberg reported on Wednesday.
The UAE-based company is in talks with a group of investors and is thought to be close to reaching a deal – although the talks could still “falter”, Bloomberg said, citing two anonymous sources.
Arabian Business has contacted Careem for comment.
Last year the transport app secured $60 million of funding – reported at the time to be one of the largest investments in the region’s emerging technology sector to date from a group of investors led by the Abraaj Group.
In October, Careem signed a deal with Dubai’s Roads and Transport Authority (RTA) to provide a government-approved platform to book taxi services in the emirate.
The company was targeting its first profit by 2018. The founders are understood to have held several top-level meetings recently in a bid to further power the company’s growth.
Bloomberg reported that regional ride-hailing services globally are raising cash to expand their businesses and tackle competition, for example from Uber. For example, Indian start-up Ola is reportedly in talks to raise about $600 million by year end.
Careem was working with Credit Suisse Group to raise as much as $500 million in this latest round, Bloomberg said.