Emirates Telecommunications Group Company has agreed to take a 50.03 percent stake in a super app managed by Careem, Uber Technologies’ Middle East subsidiary, in a transaction valued at $400 million, e& said in a filing on Monday. Careem super-app
Careem founders Mudassir Sheikha and Magnus Olsson will manage the Super App, according to e&, the company formerly known as Etisalat Group. Uber will fully own the ride-hailing business, which will be separated from the Careem Super App business, but it will remain available on the Super app.
E& to finance Careem’s Super App deal from the existing cash balance Careem super-app
e& said in the filing that it will finance the deal from its existing cash balance, and the transaction is subject to regulatory approvals, customary closing conditions, and administrative procedures. Careem began seeking outside investors last year to help finance its Super App, which offers services outside its core ride-hailing business such as food delivery, bike rentals, digital payments and courier services.
Today is a big day. A new journey for #Careem begins as we welcome the global technology and investment group e& as an investor alongside Uber, supporting our vision to become the first “everything app” in the greater Middle East. pic.twitter.com/z2COm6viCs
— Careem (@careem) April 10, 2023
Etisalat rebranded to e& in June last year as the majority state-owned telco company embarked on a new strategy to position itself as a global technology and investment conglomerate. Careem super-app e&
E& acquires stake in Careem’s Super App to boost consumer digital services
E& said the transaction fits into its own ambitions to scale up consumer digital offerings and would allow the company to take advantage of the app to boost the growth of its consumer digital services.
Careem spokesperson said co-founders Sheikha, Olsson, and Elyas have remaining stakes. Careem Super App offers 12+ services: food/grocery delivery, micro-mobility, digital wallet/fintech, and 3rd-party services (home cleaning, car rental, laundry).
“Super apps have catalysed the economic, social and cultural growth of emerging markets today. The popularity of Super Apps has come from the need to provide a unique and seamless customer experience,” Hatem Dowidar, Group CEO of e&, commented.
Careem CEO and co-founder Sheikha said the opportunity to use technology to leapfrog the lives of people in the region is enormous.
“We are excited to bring e& into the family. Their passion for uplifting the region and the synergies across their portfolio are extremely valuable. With two strong partners in e& and Uber, I have no doubt that we will build the preeminent technology platform of the region.” Careem super-app
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