UAE-based tech unicorn Careem is reportedly in talks with e&, one of the country’s biggest telcos, regarding an investment to support its expansion into services beyond ride-hailing.
According to reports, which cited five sources familiar with the matter, the discussions have reached an advanced stage and a potential agreement could be disclosed soon.
Careem has reportedly been looking for external investors since last year to help fund its Super App, which provides various services beyond its primary ride-hailing operations, including food delivery, bike rentals, digital payments, and courier services.
It is still not confirmed how much Careem would raise from e&, or if other investors are also involved. However, local media reports noted that the ride-hailing firm has set up a separate entity to structure the deal.
In 2019, global ride-hailing firm Uber acquired Careem for $3.1 billion, giving the company market dominance across the Middle East and Pakistan. In line with the deal, Uber owns Careem’s app and its around 50 million registered users.
However, once finalised, the newly-created investment vehicle will have a service level agreement with the app and its solutions, according to reports.
