Careem raises $200m in funding

Ride-hailing company Careem said it had secured $200 million (Dh734.4 million) in fresh funding from existing investors and that it expects to raise more to finance expansion plans.

A source said the latest investment gave the ride hailing major an estimated valuation of over $2 billion.

Careem was estimated to be worth around $1 billion as of December 2016. Dubai-headquartered Careem said it expected to raise a total of over $500 million in its latest funding effort to expand into mass transportation, deliveries, and payments.

Internet-enabled services are having a profound and positive impact on our region, where the consumer internet opportunity is huge and untapped,” said Careem co-founder and chief executive Mudassir Shaikha in a statement.

Careem, founded in 2012, says it has 30 million registered users in over 120 cities in the Middle East, North Africa, Turkey, and Pakistan. The $200 million came from existing investors which include Saudi billionaire Prince Al Waleed Bin Talal’s Kingdom Holding, Al Tayyar Group, STV, and Japanese e-commerce company Rakuten.

Careem counts German car maker Daimler and China’s largest ride-hailing company DiDi Chuxing as some of its other backers.

The company has expanded into new markets this year such as Sudan and started trials on food delivery services after buying a restaurant listing and reservation online platform. Careem was planning to spend up to $150 million to launch its food delivery business, after acquiring the RoundMenu restaurant platform.