Riyadh – Mubasher: Careem, the ride-hailing app, announced on Monday a first close in its $500 million funding round.
Japan's Rakuten Inc and Saudi Telecom Co (STC) injected $350 million in a financial deal, so as to join a number of other investors, including Abraaj Group, Wamda Capital, Saudi Arabia’s Al Tayyar Travel Group, Beco Capital, El Sewedy Investments, Endure Capital, Lumia Capital and SQM Frontier among others.
Rakuten executive and head of ride-sharing and fintech investments, Oskar Mielczarek de la Miel, and an STC Group executive will also join Careem’s Board of Directors, according to Careem's press release.
The company pinpointed that the fundraise, supported by Credit Suisse, is one of the largest for a technology company in the Middle East’s history and a strong indicator of Careem’s ambitious vision.
The funds will scale up Careem’s transport services in existing and new markets, accelerate innovation across its platform of high-frequency transactions, and help the firm achieve its goal of creating one million jobs in the region by 2018, the statement said.
"We are excited to continue a strategic partnership that began in 2013 through STC Ventures’ first investment in Careem, and help build a mobility platform across the MENA region,” Khaled Biyari, CEO of STC, said.
Biyari added that STC investment is a clear bet on the future of mobility, strategic adjacencies, and Careem’s technology leadership in the region.
STC announced on Sunday that its board approved buying 10% stake in Careem with a total value of SAR 375 million ($1000 million), conditional on satisfying all required requirements to close the deal.
