UAE’s Careem raises $200 mln from Saudi, Japanese investors

Dubai-based ride-hailing firm Careem has secured $200 million from existing investors in the first close of a new fundraising round expected to exceed $500 million, it said in a statement on Thursday.

The funding is led by existing investors, including Saudi Arabia’s Al Tayyar Group, Kingdom Holding, and Saudi Technology Ventures, as well as Japanese e-commerce company Rakuten.

The funding will be used to accelerate the expansion of Careem’s internet platform across the Middle East region.

“Internet-enabled services are having a profound and positive impact on our region, where the consumer internet opportunity is huge and untapped,” Mudassir Sheikha, CEO and co-founder of Careem said.

Commenting on the deal, Abdulrahman Tarabzouni, CEO of STV, said: "Careem is a true pioneer in the Middle East technology industry and we are extremely proud to co-lead this latest round of investment. By expanding the scale and reach of its services, more start-ups can use Careem as the platform of choice, unlocking a new wave of online retailers and internet opportunities.”

In October this year, Careem launched a mass transportation service in Egypt and in February, it acquired Dubai-based RoundMenu to expand its delivery services into food.