UAE Telecommunications Group has agreed to invest $400 million in the super app operated by Careem, a Middle Eastern subsidiary of Uber Technologies Inc., as part of its aim to establish itself as a global technology investor.
According to a formal announcement, the telco firm, which is also Vodafone Group Plc’s largest investor, has reached a legally binding agreement with Uber and its regional affiliate Careem to acquire a 50.03% stake in the super app spin-out.
Uber, which bought Careem in 2020, will continue to own all of its ride-hailing operations and retain a stake in the new company. The super app will also be owned by Careem’s three co-founders.
The following is Careem’s official response to the situation:
It’s a huge day today. With the addition of e& as an investor alongside Uber, Careem embarks on a new chapter in its history as we work to establish ourselves as the region’s first “everything app.”
As we begin a new chapter in our aim to make people’s lives easier and better, we are happy to have two exceptional partners in e& and Uber. It’s a significant time for the community as well as for us. We are incredibly grateful and thrilled about the opportunity that lies ahead.
Super applications are platforms that offer users a range of services, from financial services to food delivery. The super app from Careem combines a dozen services, such as groceries and meal delivery, remittances, and outside services like laundry.
The fresh cash infusion will help the company extend its offerings throughout the Middle East, North Africa, and South Asia, where Careem is currently available in 10 countries.
According to Bloomberg, Careem started raising money for its super app more than a year ago. The era of easy money is now over, and technology companies are finding it difficult to attract investors as a result of rising interest rates.
Emirates Telecom, formerly known as Etisalat and currently going by the name e&, wants to become a major investment in the world of technology. In a recent interview with international magazine, the company’s CEO claimed that it has the “ability and the funds” to accomplish this goal.
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