Emirates Telecommunications Group Company, commonly known as e&, has announced its agreement to acquire a 50.03% stake in the super app managed by Careem, a subsidiary of Uber Technologies in the Middle East.
The transaction, valued at $400 million, will be financed from e&’s existing cash balance and is subject to regulatory approvals and customary closing conditions.
The super app, managed by Careem founders Mudassir Sheikha and Magnus Olsson, offers various services outside of ride-hailing, including food delivery, bike rentals, digital payments, and courier services. The ride-hailing business will be separated from the super app business and will be fully owned by Uber, but will still be available on the app.
Careem has been seeking outside investors to help finance its super app, and the deal with e& fits into the latter’s ambitions to scale up consumer digital offerings. E& believes that this acquisition will allow the company to take advantage of the app to boost the growth of its consumer digital services.
This acquisition marks an important step for e& in expanding its digital services portfolio and keeping up with the rapidly evolving digital landscape. The super app managed by Careem has gained significant popularity in the Middle East, and e& hopes to leverage its success to expand its own offerings and further establish itself as a leading player in the region’s digital ecosystem.
