February 6, 2023

Dubai Week

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Kareem seeks $ 500 million from Gulf Sovereign Fund

Kareem seeks $ 500 million from Gulf Sovereign Fund

Looking forward Cream Company Careem, owned by Uber Technologies Inc., is seeking to raise up to $ 500 million from investors, including regional sovereign funds, to finance the expansion of services beyond mass transportation, Bloomberg said, citing sources.

Based in Dubai, Kareem held fundraising talks with the Public Investment Fund of Saudi Arabia and ADQ Holdings in Abu Dhabi.

Negotiations are at an early stage, so sources told Bloomberg that the final amount may change and rise.

In 2019, Uber acquired Karim for $ 3.1 billion in a major contract for a regional startup.

Despite being the full owner of Uber, the two companies operate relatively independently.

Founded in 2012, Careem now develops a subscriber-based “super” app that allows access to services including food delivery, grocery shopping, shipping and bike rental.

Uber, which shut down its food delivery service in the United Arab Emirates and Saudi Arabia two years ago, is focusing on express delivery in the country. Meanwhile, Kareem aims to become the first super processor in the Middle East, although its release will require additional funding.

People said the money would give Uber more freedom to pursue its ride-sharing strategy in the Karim region, but that does not mean the two companies will sever ties even slightly.

Demand for this specialty has grown significantly as a result of recent corporate scandals affecting more than a third of the workforce.

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