Careem’s Series A angel investors, which include Saudi’s STC Ventures and Oqal Angel Investment Network, have made 100x return on their investment in the Dubai-based ride-hailing app, according to the tech company.
A spokesperson from Careem declined to specify the return amount, however, it is known that STC Ventures, the company’s first institutional investor, had owned 6.4 percent of Careem at the time of exit and had led its $1.7 million seed round in 2013 with an investment of $1 million.
Calculations by Arabian Business predict that STC has made a return of over $200 million on their total investment in Careem.
Uber on Monday received approval from the UAE to acquire Careem in a $3.1 billion deal by the end of this year. The transaction, the largest ever in the field of technology to take place in the Middle East, will consist of $1.7bn in convertible notes and $1.4bn in cash.
The company said it will remain an independent brand following the Uber acquisition, with co-founder and CEO Mudassir Sheikha continuing to be chief executive. A new board comprising Sheikha, co-founder and managing director Magnus Olsson and three Uber executives will also be formed.
The Uber-Careem deal has brought the value of acquisitions involving targets in the Middle East and Africa to $103.4bn.
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