The Abraaj Group, which led a $60 million deal in Careem, the Dubai-based app-based car service in late 2015 has sold its stake to Kingdom Holding Company. Details of the deal’s valuation were not disclosed.
The exit forms part of an overall $150 million investment in Uber’s regional rival by a group of companies that include German car maker Daimler, venture capital firm DCM Ventures and hedge fund Coatue Capital. The latest deal lifts the total amount invested in the firm to $500 million up from $350 million last December when it was reportedly valued at $1 billion.
Since its founding in 2012, the ride hailing service as grown rapidly, and now operates in 80 cities in the Middle East, North Africa, Turkey and Pakistan, being the dominant force in the sector in each country and region. Part of its short-term strategy is to expand its operations further and launch in Tunisia and Algeria as well as bolster its activities in Kuwait and Turkey.
Kingdom Holding is investing a total of $62 million for a 7% stake in the company, which it acquired through a combination of the secondary share purchase from Abraaj as well as participation in Careem’s broader fund raise. As part of the deal, Kingdom Holding’s CFO, Mohamed Fahmy Soliman takes a seat on Careem’s board.