Careem has successfully raised $560 million over two funding rounds, achieving a valuation of over $1 billion. The platform is a pioneer in the Middle East's ride-hailing economy, expanding its services to include mass transportation, delivery, and payments.
Keep reading to explore the intricacies of Careem's fundraising journey and the investors backing this innovative platform.
What Is Careem?
Careem, founded in July 2012 by Abdulla Elyas, Magnus Olsson, and Mudassir Sheikha, is a leading platform in the Middle East's ride-hailing economy. The company, headquartered in Dubai, has expanded its services to include mass transportation, delivery, and payments, aiming to become the region's everyday SuperApp.
With a workforce of between 1001-5000 employees, Careem operates in 120 cities across 15 countries. The platform has created over one million employment opportunities in the region, showcasing its significant impact on the local economy.
Careem's mission is to simplify and improve lives through its diverse range of services, which include transportation, food delivery, grocery delivery, and financial services. The company's rapid growth and substantial investments have solidified its position as a key player in the Middle East's tech landscape.
How Much Funding Has Careem Raised?
- Series E Round
- Amount Raised: $500,000,000
- Date: June 2017
- Lead Investors: Kingdom Holding Company, Daimler Financial Services, Rakuten Americas
- Valuation at Round: $1B
- Motivation Behind the Round: To compete with Uber in the Middle East.
- Series C Round
- Amount Raised: $60,000,000
- Date: November 2015
- Lead Investors: Lumia Capital, Endure Capital
- Motivation Behind the Round: Scaling operations and expanding into new markets.
Total Amount Raised: $560M
Current Valuation: $1B+
Key Investors
- Kingdom Holding Company
- Details: A Saudi-based venture capital firm founded by Prince Alwaleed bin Talal. It is known for its diverse portfolio and significant investments in various sectors.
- Investment Focus Areas: Technology, transportation, media
- Notable Investments: Lyft, Twitter, Snap
- Daimler Financial Services
- Details: A subsidiary of the German automaker Daimler AG, focusing on financial and mobility services. It aims to innovate in the automotive industry through strategic investments.
- Investment Focus Areas: Automotive technology, mobility services
- Notable Investments: Hailo (UK), Taxibeat (Greece), MyTaxi (Germany)
- Lumia Capital
- Details: A venture capital firm that invests in technology and growth-stage companies. Lumia Capital is known for its strategic support and global network.
- Investment Focus Areas: Technology, growth-stage companies
- Notable Investments: Careem, OpenDNS, Greenhouse
- DCM Ventures
- Details: A venture capital firm that focuses on early-stage technology companies. DCM Ventures has a strong presence in the U.S. and Asia.
- Investment Focus Areas: Early-stage technology companies
- Notable Investments: SoFi, Bill.com, Lime
- Coatue Management
- Details: A global investment manager known for its focus on technology, media, and telecommunications. Coatue Management leverages data-driven strategies to identify promising investments.
- Investment Focus Areas: Technology, media, telecommunications
- Notable Investments: Snap, ByteDance, DoorDash
What's Next for Careem?
Careem's future is brimming with opportunities, particularly in the Middle East and North Africa (MENA) region. With a population of 700 million, the market for transportation services is largely untapped. Careem's strategic partnerships, such as with Daimler, position it well to leverage technological advancements like autonomous vehicles. Addressing the lack of public transportation infrastructure and providing solutions in areas with low car ownership are key growth avenues.
As Careem continues to expand, further investment rounds are likely. The company has the potential to attract more strategic investors, especially those interested in cutting-edge technologies. However, challenges such as limited public transportation infrastructure, low car ownership rates, and payment preferences for cash over cards could pose hurdles. Additionally, cultural and legal restrictions on women driving in some areas may impact their mobility.
Use Clay to Get Funding Data
Sales professionals, take advantage of Clay's platform to access comprehensive fundraising data on companies like Careem and gather other critical business insights.
Sign up for free on Clay and elevate your sales strategy with unparalleled data and insights.
