United Arab Emirates-based chauffeur-driven car service Careem raised $60m yesterday in a series C round featuring travel agency Al Tayyar and telecommunications company Saudi Telecom.
Private equity group Abraaj led the round, which also included Beco Capital, Lumia Capital, Wamda Capital and Impulse, which acts as a subsidiary of sovereign wealth fund Kuwait Investment Authority. Saudi Telecom invested through its STC Ventures subsidiary.
Careem operates an app-driven service similar to that provided by counterparts such as Uber. Founded in 2012, it has since extended its service to 20 cities in the Middle East and North Africa.
The cash will be used by Careem to expand further across the MENA region and southern Asia. It also intends to grow its team and introduce new products and services.
The company previously secured $10m in a December 2014 series B round led by Al Tayyar, which remains Careem’s biggest investor following the latest round. STC Ventures, which led a $1.7m round for Careem in 2013, also took part in the series B.
Mudassir Sheikha, co-founder and managing director of Careem, said: “As we successfully close our third round of funding, we welcome our new investors and partners into Careem. The Abraaj Group brings unique regional insights, proven execution capability, and global resources we consider critical to realising our mission of simplifying the lives of people in the region.
“We will continue to innovate our product, expand through the region, bring greater income generating opportunities to even more of our Captains, and recruit outstanding talent to serve a growing customer base across our cities.”