Abu Dhabi-based tech holding company e&, formerly Etisalat has agreed to acquire a 50.3% share in Careem’s Super App in a $400 million agreement.
Mudassir Sheikha and Magnus Olsson, the founders of Careem, will oversee the Super App. The ride-hailing business will be separated from the Careem Super App business. Uber still fully owns Careem’s ride-hailing company, which it purchased for $3.1 billion in 2019. The size of Uber’s investment in the spinoff is still unknown.
Last year, Careem began looking for outside investors to help fund its Super App, which provides services other than ride-hailing, such as food delivery, bike rentals, digital payments, and courier services.
“e& is investing $400m to become a majority shareholder in Careem’s Super App alongside Uber and all three of Careem’s co-founders,” a statement from e& said. The investment will significantly accelerate Careem’s goal to create “the first ‘everything app’ for customers across the Middle East,” the firm wrote.
Careem operates in more than 80 locations and 10 countries. Founded in 2012 by co-founder and CEO Mudassir Sheikha in Dubai, the business expanded from a ride-sharing service to a “Super App” platform that is utilised all throughout the Middle East, from Morocco to Pakistan.
