<article><a style="color: #000080;" href="http://dealstreetasia.com/tag/careem" target="_blank">Careem</a>, the leading ride-hailing service in the West Asia and North Africa, announced today a first close in its $500 million funding round.</article>

<a style="color: #000080;" href="http://dealstreetasia.com/tag/careem" target="_blank">Careem</a>, the leading ride-hailing service in the West Asia and North Africa, announced today a first close in its $500 million funding round.
The investment of $350 million was co-led by <a style="color: #000080;" href="http://dealstreetasia.com/tag/rakuten" target="_blank">Rakuten, Inc.</a>, an internet services and innovation co headquartered in Japan, and <a style="color: #000080;" href="http://dealstreetasia.com/tag/saudi-telecom-company" target="_blank">Saudi Telecom Company (STC)</a>, the largest telecom operator in the Middle East.
The transaction will see government-controlled Saudi Telecom Co. invest $100 million in Middle East-based ride-hailing app <a style="color: #000080;" href="http://dealstreetasia.com/tag/careem" target="_blank">Careem Networks FZ</a>, giving the four-year-old company a valuation of about $1 billion. Saudi Telecom will maintain a 10 per cent stake in the company as a result of this investment.
The transaction will see also Rakuten executive and head of ride-sharing and fintech investments, Oskar Mielczarek de la Miel, and an STC Group executive join Careem’s Board of Directors.
Careem, which launched series in 2012 is available across 47 cities in Turkey, Pakistan, West Asia and North Africa.
&#8220;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,” said Dr. Khaled Biyari, CEO of STC. “Our investment is a clear bet on the future of mobility, strategic adjacencies, and Careem’s technology leadership in the region,&#8221; he added.
Saudi Arabia’s Public Investment Fund, which also holds a 70 per cent stake in STC, had invested $3.5 billion in San Francisco-based Uber in June. Down the line, this may perhaps lead to a consolidation of Uber operations with Careem in the future, as <a style="color: #000080;" href="http://www.dealstreetasia.com/stories/uber-said-to-merge-china-business-with-didi-in-35b-deal-49112/">happened with Uber China and Didi Chuxing</a> earlier this year.
New and existing investors include the Abraaj Group, Al Tayyar Group, Beco Capital, El Sewedy Investments, Endure Capital, Lumia Capital, SQM Frontier and Wamda Capital among others.
A local company established in 2012, Careem now operates in 47 cities across 11 countries and hosts over 6 million users and 150,000 Captains (drivers) in the Middle East, North Africa and South Asia region.
Mudassir Sheikha, co-founder and CEO of Careem, said, “We are inspired and humbled to work with world class strategic partners like Rakuten and STC. They not only bring significant institutional backing for Careem’s new horizons, but also global technology leadership and deep local experience bringing us closer to achieving our mission of improving the lives of everyone in the region.”
The latest 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 Careem achieve its goal of creating one million jobs in the region by 2018.
“The MENA region has a growing, connected, urban population with great potential for ride hailing and other e-commerce services,” said Oskar Mielczarek de la Miel, Executive Officer at Rakuten. “This investment directly aligns with Rakuten’s vision for global innovation as Careem has demonstrated its ability to scale to one of the largest shared economy platforms in the region, and to accelerate the adoption of new transit solutions.
Bloomberg in a report said that other technology unicorns in West Asia include online marketplace Souq.com, whose latest round of fund raising last year had valued the company at $1 billion.
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Saudi Telecom Co. will invest $100 million in Middle East-based ride-hailing app Careem Networks FZ, giving the four-year-old company a valuation of about $1 billion.

Uber rival Careem valued at $1b on Rakuten, Saudi Telecom deal

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Uber rival Careem valued at $1b on Rakuten, Saudi Telecom deal

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