United Arab Emirates-based ride hailing platform Careem closed the first tranche of a $500m round co-led by e-commerce firm Rakuten and telecommunications group Saudi Telecom at $350m yesterday.
Travel agency Al Tayyar Group, Abraaj Group, Beco Capital, El Sewedy Investments, Endure Capital, Lumia Capital, SQM Frontier and Wamda Capital also took part.
Saudi Telecom invested $100m as part of the round, which values Careem at $1bn according to a regulatory filing. Oskar Mielczarek de la Miel, who heads up Rakuten’s ride sharing and fintech investments, will join Careem’s board along with an STC Group executive.
Careem runs a ride hailing service that spans 47 cities across 11 countries in the Middle East and North Africa (MENA), and South Asia regions, It has around 6 million users and will use the funding to scale its service in both new and existing markets.
The round comes after Careem raised $60m in a November 2015 series C round featuring STC Ventures, the venture capital firm backed by Saudi Telecom, as well as Al Tayyar, Abraaj, Beco, Lumia, Wamda and Impulse, a subsidiary of the state-owned Kuwait Investment Authority.
STC Ventures had led Careem’s $1.7m series A round in 2013 before returning for a $10m Al Tayyar-led series B the following year.
Oskar Mielczarek de la Miel said: “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.”
Khaled Biyari, Saudi Telecom’s CEO, added: “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.
“Our investment is a clear bet on the future of mobility, strategic adjacencies, and Careem’s technology leadership in the region.”