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Careem looks to raise $500m to fund expansion

e& announces agreement with Uber Technologies, and its subsidiary Careem to acquire a majority stake in Careem’s Super App.
  • The firm owned by Uber will use the money to bankroll an expansion into services different from ride-hailing
  • It has already held talks with Saudi Arabia’s Public Investment Fund and Abu Dhabi’s ADQ to raise the funds

Careem, the vehicle-for-hire firm, has set its sights on raising some $500 million from investors, including regional sovereign wealth funds like Saudi Arabia’s Public Investment Fund and Abu Dhabi’s ADQ.

The firm owned by Uber will use the money to bankroll an expansion into services different from ride-hailing.

It has already held talks with Saudi Arabia’s Public Investment Fund and Abu Dhabi’s ADQ to raise the funds. The report also noted that Bank of America Corp. is advising on the transaction.

As the talks are currently at an early stage, the final amount might still change and more funds might join.

Uber bought Careem in 2019 for $3.1 billion. Even though Uber has full ownership, both these companies are operating relatively independently.