Careem raises $60m in new funding round
New and existing investors raise capital to accelerate growth
Locally-founded car service Careem has announced that it has raised $60 million in a Series C funding round, with participation from new existing regional and international investors.
Existing investors STC Ventures, Al Tayyar Travel Group and Beco Capital have invested again in Careem, while Wamda Ventures, Impulse Venture Capital and Lumia Capital are new investors.
The funding will be used to accelerate growth in Careem's car service across MENA and for further investment in innovation and people.
Founded in Dubai in 2012, Careem is a technology-based transportation service currently operating in 20 cities from Morocco to Pakistan, with the aim of offering reliable and affordable ground transportation. In the last three years, the company says it has witnessed strong growth in its core markets of UAE, Saudi Arabia and Egypt. With this Abraaj-led investment, Careem is positioned to solidify its leadership in the region by partnering with regulators and governments to create jobs, increasing livelihoods and empowering women.
Mudassir Sheikha, Careem's co-founder and managing director, commented: "We are delighted to partner with Abraaj Capital and our other investors. They bring the unique regional insights and resources we consider critical to realizing our mission of simplifying the lives of people in the region. We owe this success to our ‘captains' who drive our customers and provide outstanding customer service. We will continue to innovate our product, expand through the region, bring more income generating opportunities to even more captains, and recruit outstanding talent to serve our growing customer base across MENA and Pakistan."
Arif Naqvi, founder and group chief executive of The Abraaj Group, added: "Careem is by far the biggest ‘sharing-economy' solution from the region, and we are excited to partner with the company to develop a world-class institution. We are delighted by the company's exceptional performance, service quality and demonstrated scale over the last three years. We are backing a company with strong growth potential as the regional population is expected to reach 700 million by 2020, with increasing mobile adoption contributing to increasing demand for quality transportation services. We look forward to working closely with Careem's management to implement its expansion plans and capitalize on the growing market opportunities this sector presents."