Board members of telecommunications firm Saudi Telecom have approved a $100m investment in United Arab Emirates-based ride ordering platform Careem, Reuters reported yesterday, citing a stock exchange filing.
Founded in 2012, Careem operates an app-based ride hailing service similar to that of Uber across the Middle East and North Africa. It announced a $100m research and development drive in July this year that involved establishing R&D centres in Egypt and Germany while expanding its team in Pakistan and its home country.
The Saudi Telecom investment values Careem at $1bn post-money. Saudi Telecom has been a Careem backer since 2013 when it led the company’s $1.7m series A round in 2013 through STC Ventures, the venture capital firm in which it is an anchor investor.
STC Ventures also participated in a $10m round in late 2014 that was led by travel agency Al Tayyar Travel Group.
Careem subsequently received $60m in series C funding in November 2015 from STC Ventures, Al Tayyar, private equity group Abraaj, Beco Capital, Lumia Capital, Wamda Capital and Impulse, a subsidiary of sovereign wealth fund Kuwait Investment Authority.