United Arab Emirates-based on-demand ride platform Careem received an undisclosed amount of funding from China-based counterpart Didi Chuxing yesterday as part of a strategic partnership agreement.
Founded in 2012, Careem operates a mobile app-based ride hailing service that is currently available in 80 cities across 13 countries in the Middle East, Asia and Africa.
The partnership will involve the companies sharing resources and knowledge, as Didi looks to help Careem make its offering more affordable and grow its service.
Careem aims to become the market leader across several Asian and North African countries including Morocco and Pakistan. It had previously raised $572m in equity funding, having closed a $500m series E round in June 2017.
E-commerce group Rakuten and telecommunications firm Saudi Telecom co-led the round’s $350m first tranche in December 2016, investing alongside travel services group Al Tayyar, Abraaj Group, Beco Capital, El Sewedy Investments, Endure Capital, Lumia Capital, SQM Frontier and Wamda Capital.
Investment holding group Kingdom Holding led the $150m second close with the support of car manufacturer Daimler, venture capital firm DCM Ventures and investment firm Coatue Management as well as, reportedly, Rakuten.
STC Ventures, the corporate venturing subsidiary of Saudi Telecom, and Al Tayyar had already taken part in Careem’s $60m series C round in 2015, alongside Kuwait state-owned investment fund Impulse, Abraaj, Beco Capital, Lumia Capital and Wamda Capital.
Al Tayyar and STC Ventures had earlier supplied $10m in funding in 2014, following a $1.7m investment by STC Ventures in 2013.
Cheng Wei, founder and CEO of Didi Chuxing, said: “Growing urban populations and economic and social diversity in the Middle East and North Africa region present enormous opportunities for the ride-hailing economy.
“Through technology exchange and co-development, we look to support continued growth and transformation of the region’s transportation industry, tap into the significant potential of the local internet economy and foster more innovative services for a broader network of communities around the world.”