KARACHI: In the third spell of investment, The Abraaj Group along with seven other groups is investing US$ 60 million in Careem, a digital app based car service, stationed in 20 cities including Karachi and Lahore.
Careem is an application based pick and drop car service which aims to make chauffeur driven road travel safe, reliable and convenient for an ordinary commuter. The announcement was made through a press release on Thursday.
“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 realizing 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,” said Mudassir Sheikha, Careem’s co-founder and Managing Director.
With The Abraaj Group as a lead investor along with Al Tayyar, STC Ventures, Beco Capital, Impulse (a subsidiary of Kuwait Investment Authority), Lumia Capital and Wamda Capital. Al Tayyar remains the largest institutional investor in Careem.
Careem has a growth rate of over 30% per month across its core markets of the UAE, Saudi Arabia and Egypt, according to the press release.
The company will use the funding from Abraaj for further growth in the Middle East, North Africa and South Asia by introducing key new hires and accelerating its pace of entry into new markets and developing innovative new products and services.
The group is already in competitive figures for 10 sectors including consumer, energy, financials, healthcare and utilities. They support entrepreneurship through their social investment program aiming for ‘deep root substantial economic landscape.’
“The transport industry is witnessing a positive disruptive revolution from the use of technology. The headroom for growth in the ride-share and taxi-app industry continues to be substantial and is proving out globally – and with our markets being no exception.
“We strongly believe that the combination of Careem and its management team with Abraaj’s track record of supporting regional champions will drive scale, efficiency, and produce significant public policy benefits. We intend to equip this business fully to rise to the challenge – and take leadership of this segment,” said Mustafa Abdel-Wadood, Partner at The Abraaj Group.