UAE's tech giant, E& Invests $400M in Careem Super App

UAE's tech giant, E& Invests $400M in Careem Super App

UAE-based tech giant and investment group, e& formerly known as Etisalat has invested $400 million in the Super App of ride-hailing startup Careem.

This investment makes e& the major shareholder by acquiring a 50.03 per cent stake in the Super App.

Regardless of the new deal,  Careem which is a subsidiary of Uber Technologies Inc. will still be owned by Uber and run its services to its existing customers.

The investment falls in line with e&’s strategic goal of “scaling up consumer digital offerings and accelerating its transformation to a global technology and investments group.” The deal grants e& access to diverse digital verticals and services, strong talent, and new regions. Also,  e& hopes to expand its fintech products, e& life and e& money.

Chief Executive of e& Group, Khalifa Al Shamsi said, “We are thrilled to welcome Careem into the e& family with this exciting and ground-breaking deal. There are several growth opportunities between Careem and e& Life as the “consumer digital” arm of e&. Our current strengths, primarily in fintech and multimedia, coupled with Careem’s services and regional footprint, will accelerate our joint vision towards a regional super app. With this partnership between e&, Careem and Uber we will set new standards of product innovation and customer experience throughout the region.”

Careem is a ride-hailing startup established in 2012 by Mudassir Sheikha and Magnus Olsson. In April 2020, it launched its super app. The Careem Super App provides a wide range of services such as a digital wallet, food and grocery delivery, micro-mobility, a suite of fintech services as well as third-party services including home cleaning, car rental and laundry. The startup serves clients in 10 countries across the Middle East, North Africa and South Asia.

Careem will use this investment to accelerate its vision to build the first “everything app”. The startup hopes to add more partner services to its app and expand its services and the Careem Plus subscription programme.

The agreement will see Careem benefit from e&’s experience in developing tech-enabled businesses and a large customer base.

Co-founder and CEO of Careem, Mudassir Sheikha said, “The opportunity to use technology to leapfrog the lives of people in the region is enormous. Uber has been an incredible partner over the last three years as we expanded our mission to simplify the lives of people with everyday services beyond ride-hailing. We are excited to bring e& into the family. Their passion for uplifting the region and the synergies across their portfolio are extremely valuable. With two strong partners in e& and Uber, I have no doubt that we will build the preeminent technology platform of the region.”

The deal is currently subject to regulatory approvals, administrative procedures and customary closing conditions.