UAE-based telecom-tech company e& to acquire Careem's super app
With a $400 million investment, e& will become a majority shareholder in Careem's super app, alongside Uber and all three of Careem's co-founders.
UAE-based multinational telecommunication services provider e& has signed a binding agreement with Technologies and its subsidiary to acquire a majority stake in Careem’s spinout "super app".
The company has invested $400 million to become a majority shareholder in the super app, alongside Uber and all three of Careem's co-founders—Mudassir Sheikha, Magnus Olsson, and Abdulla Elyas.
Careem’s ride hailing business will remain fully owned by Uber.
Since Uber’s acquisition in 2020, Careem has evolved into multiservice app offering varied services.
At present, its services include food and grocery delivery, digital wallet, fintech services, micro-mobility, as well as third-party services including home cleaning, laundry, and car rental.
Careem caters to customers in 10 countries across the Middle East and North Africa (MENA) region, and South Asia.
With the investment, Careem will now expand its super app across the Middle East. It will also expanding its key food, grocery, and fintech verticals, read a press statement shared by Zawya.
Further, it will also include expansion of its Careem Plus subscription programme across the region, while adding more partner services to the app.
e& has experience in scaling complex technology-enabled businesses across a largely shared geographic footprint.
The investment also falls in line with the company's strategic aim to scale up consumer digital offerings and enhance its transformation to a global tech and investments group. Additionally, e& will leverage the Super App to foster the expansion of its fintech vertical, e& money.
At present, e& has 163 million subscribers across 16 countries in the Middle East, Asia, and Africa.
“The Careem Super App, is a digital native that has built a rapidly growing payments, food and grocery delivery network, and a platform for other digital businesses to scale from," said Hatem Dowidar, Group CEO, e&.
The transaction's completion remains subject to regulatory approvals, customary closing conditions, as well as administrative procedures.
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Edited by Kanishk Singh
