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Thu 24 Nov 2016 11:02 AM

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Careem 'in talks for $300 million fundraising'

Ride-hailing app working with Credit Suisse to secure financing to spur growth

Careem 'in talks for $300 million fundraising'

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.

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