U.S. pharma giant Bristol-Myers has sought to sell the unit amid a push to streamline its business globally.
It plans to spend over $150 million developing the delivery business, starting with food, in Dubai and Jeddah.
The proceeds will also be used to expand the brand in its existing markets of Saudi Arabia, Egypt, Turkey, the UAE, Qatar, Bahrain, Lebanon and Morocco.
Swvl is planning to launch services in Manila in the first quarter next year followed by other cities in the Philippines, Vietnam, and Thailand.
The $200 million was the first close of a funding round in which it expects to raise over $500 million.
Dubai-headquartered Careem suspended services in Oman in 2017 shortly after launching when the government asked it to first work with licensed taxis.
Dubai-based Careem is Uber’s main Middle East rival, competing in most of the region’s major cities including Cairo, Dubai, and Riyadh.
The dismissal of the case provides breathing room for Naqvi as Dubai-based Abraaj tries to sell its investment management business.
Careem, the main Middle East rival of Uber Technologies, has been trialing food delivery services after announcing in February it had acquired regional online restaurant listing platform RoundMenu.
The Dubai Financial Services Authority (DFSA) has interviewed the firm’s founder, Arif Naqvi, and other senior executives in the past few months as part of the probe.