Emirates Telecommunications Group Co., also known as e&, has made a strategic move by acquiring a majority stake in Careem‘s Super App. The Super App offers a diverse range of services, which goes beyond its core ride-hailing business. The acquisition is valued at $400 million and will give e& a 50.3% stake in the Super App.
According to the announcement, the Super App will continue to be managed by Careem’s founders, Mudassir Sheikha and Magnus Olsson. However, the ride-hailing business will be fully owned by Uber, but still accessible through the Super App. The deal will be financed from e&’s existing cash balance and is subject to regulatory approvals, customary closing conditions, and administrative procedures.
Careem had been seeking outside investors to finance its Super App, and this investment from e& will support its efforts to scale the platform. Furthermore, e& aims to expand its consumer digital offerings and take advantage of the app to boost growth.
The Super App has grown rapidly in popularity, offering a range of services such as food delivery, bike rentals, digital payments, and courier services. The investment by e& is expected to drive further expansion of the platform and cement its position as a key player in the digital services market in the Middle East.
The acquisition will give e& access to a growing market and help it to diversify its digital offerings, while also supporting Careem’s efforts to expand its Super App platform.