Careem seeks to raise $500 mln to finance expansion plans: report

Logo of Careem

Uber-owned Careem is seeking to raise $500 million from investors, including Gulf sovereign funds, Bloomberg reported, citing sources.

The funds are meant to help Careem finance its expansion plan to provide services beyond transportation, sources said, adding that the company held talks with Saudi Arabia’s Public Investment Fund (PIF) and Abu Dhabi Holding Company to obtain the required financing.

Bank of America is advising on the transaction, sources said, noting that the talks are at an early stage so the final value of the financing process may change and more financiers may join.

In December, Uber was reported to be in talks with its subsidiary Careem to bring in external investors, with the aim of supporting Careem’s expansion by launching a new application that includes services outside its main scope of work – such as food delivery, electronic payment and postal services, according to data available with Argaam.

In March 2019, Uber officially acquired Careem for $3.1 billion.