Abu Dhabi-based energy firm E& is set to acquire a majority stake worth $400 million in ride-hailing platform Careem’s Super App. The move comes as part of E&’s push into the digital space, and marks its first major investment in the technology sector.
Careem’s Super App is a popular ride-hailing service operating in the Middle East, North Africa, and Pakistan. It offers a range of transport services, including ride-hailing, food delivery, and e-commerce. The Super App has seen rapid growth in recent years, with over 33 million registered users and over 1.5 million drivers.
The investment by E& will allow the company to expand its reach and strengthen its position in the region’s digital economy. E& has been looking to diversify its business away from oil and gas, and sees the digital space as a key area for growth. The company has already made a number of investments in the technology sector, including a stake in Abu Dhabi-based cybersecurity firm Group-IB.
Speaking about the investment, E& CEO Sultan Ahmed Al Jaber said: “As we continue to diversify our business and pursue new growth opportunities, we see tremendous potential in the digital economy. Careem has demonstrated strong growth and is well-positioned to capitalize on the region’s fast-growing digital economy. We are excited to partner with them and support their continued expansion.”
The deal is expected to close in the coming weeks, subject to regulatory approvals. Under the terms of the agreement, E& will acquire a majority stake in the Super App, with Careem retaining a significant minority stake. The Super App will continue to operate under the Careem brand and management team.
Careem CEO Mudassir Sheikha said: “This investment is a testament to the strength of our business and the potential of the region’s digital economy. We are thrilled to partner with E& and look forward to working together to bring our Super App to even more users across the region.”
The investment comes at a time of rapid growth in the digital economy in the Middle East and North Africa. According to a report by Google and Temasek, the region’s internet economy is expected to grow to $48 billion by 2025, up from $23 billion in 2020. The report also found that ride-hailing is the largest segment of the region’s internet economy, accounting for over a third of total online spending.
The Super App is well-positioned to capitalize on this growth, with its broad range of services and strong brand recognition. The platform has also been expanding into new markets, launching in Sudan and expanding its food delivery service to new cities in Pakistan.
The investment by E& is expected to provide the Super App with the resources it needs to accelerate its growth and expand its range of services. The company has already been investing heavily in technology, including the development of its own mapping and routing systems. It has also been working to improve the user experience, introducing new features such as in-app chat and the ability to book rides for others.
The Super App has also been expanding into new areas, including the delivery of groceries and other essential items. It has partnered with a number of retailers and grocery stores to offer a wide range of products, and has been experimenting with new delivery models such as drones and robots.
The investment by E& is expected to accelerate these efforts, allowing the Super App to expand into new markets and develop new products and services. The partnership is also expected to provide the Super App with access to E&’s expertise and resources, including its network of contacts in the region’s business community.
Overall, the investment by E& in Careem’s Super App is a major step forward for both companies, and a sign of the growing importance of the digital economy in the Middle East.
