UAE’s Careem close to raising $300 mln funding: report

Dubai-based ride booking service Careem – Uber’s Middle East rival – is close to raising about $300 million in funding, Bloomberg reported, citing sources with knowledge of the matter.

The company is planning additional funding rounds and seeking cash from prominent financial and strategic investors, the sources said, adding that no agreement has been finalized yet.

Careem was working with Credit Suisse to raise as much as $500 million, sources told the agency in September, adding that the start-up could be valued at over $1 billion after the funding.

Last year, the firm – which is backed by Saudi-listed Al Tayyar Travel Group – raised $60 million from investors including Dubai’s Abraaj Group, in order to expand in the Middle East, Africa, and Asia.

In July this year, Careem said it plans to invest $100 million in research and development (R&D) over the next five years under a global expansion strategy.

The company is looking to grow its team in the UAE and Pakistan, in addition to opening new R&D centers in Egypt and Germany, it said.