App-based car booking service Careem has secured one of the largest investments in the region’s emerging technology sector to date from a pool of investors led by The Abraaj Group (Abraaj)
The Series C investment of $60 million, which will be used to drive Careem’s growth into new markets, also includes Al Tayyar, STC Ventures, Beco Capital, Impulse (a subsidiary of Kuwait Investment Authority), Lumia Capital and Wamda Capital.
The third round of fundraising by Careem sees Al Tayyar remaining as the largest institutional investor in the car service while Abraaj has joined other investors for the first time.
Careem will use the funding to invest in further growth in the Middle East, North Africa and South Asia, introducing key new hires, accelerating its pace of entry into new markets, and developing innovative new products and services.
Mustafa Abdel-Wadood, partner at The Abraaj Group, said that Abraaj invests in enterprises that cater to rising levels of urban demand in global growth markets, and recognises the relevance of technology-led, “sharing economy” businesses with strong management and growth trajectories.
“The transport industry is witnessing a positive disruptive revolution from the use of technology,” he said.
“The headroom for growth in the ride-share and taxi-app industry continues to be substantial and is proving out globally – and with our markets being no exception. We strongly believe that the combination of Careem and its management team with Abraaj’s track record of supporting regional champions will drive scale, efficiency, and produce significant public policy benefits.
“We intend to equip this business fully to rise to the challenge – and take leadership of this segment”.
Founded in Dubai in 2012 by Magnus Olsson, Mudassir Sheikha, and Abdulla Elyas, Careem has witnessed strong growth month on month of over 30 percent across its core markets of the UAE, Saudi Arabia and Egypt. It currently operates in 20 cities from Morocco to Pakistan.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.