A report released by Bloomberg says Careem, a ride-hailing startup based out of Dubai has finished a funding round ahead of a potential initial public offering (IPO) and if they reach their goal, the money would give the company a valuation of around $1.5 billion. It was only two years ago that Careem was valued at about $1 billion.
The ride-hailing company is also in the process of hiring financial advisors for these fundraising rounds. Japanese eCommerce Rakutan and German automaker, Daimler are some of the other well-named companies that are backing Careem. Al-Waleed bin Talal, a Saudi billionaire has also invested in the company with his investment firm, Kingdom Holding, along with Saudi Telecom Company's venture capital branch, STV.
RoundMenu, a restaurant listing and reservation platform was bought out by Careem in February and according to a report in Reuters that month, Careem was to begin testing a delivery service for RoundMenu customers on a small scale.
RoundMenu has a presence in 18 cities in nine Arab countries, including Saudi Arabia, United Arab Emirates, and Egypt. Though it competes with other food delivery services in the region, like Talabat, Zomato, Uber Eats, and Deliveroo, RoundMenu has raised around $3.1 million since its launch in 2012.
Careem reported closing a Series E venture capital funding round with $500 million last June, and according to a report in TechCrunch, Careem's Co-founder and CEO, Mudassir Sheikha stated that the new funding would bring the company's valuation to $1 billion, though a different source said the valuation is currently at $1.2 billion.
“With our investment in Careem, we are now taking the strategic step to becoming the world’s leading provider of mobility services,” Klaus Entenmann, CEO of Daimler Financial Services AG and also one of the investors, said in a statement at the time. “Careem has quickly leaped to the leadership of ridesharing within the MENA regions by delivering rapid innovation and customer growth, and is spearheading new ways to transport people from point A to point B.”
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