UAE’s e& to acquire majority stake in Careem’s Super App for $400mn

Emirates Telecommunications Group announced the signing of a binding agreement with Uber Technologies, Inc. and its subsidiary Careem to acquire a majority stake in the latter’s Super App spinout.

It will take a 50.03% stake in the super app managed by Careem, Uber Technologies’ Middle East subsidiary, in a transaction valued at $400 million, e& said in a filing.

A statement said Careem’s ride hailing business will remain fully owned by Uber and continue to be available with other services on the existing app for customers.

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.

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The deal will be financed from e&’s existing cash balance, and subject to regulatory approvals, customary closing conditions and administrative procedures, e& said in the filing.

Founded in Abu Dhabi more than four decades ago as the UAE’s first telecommunications company, the Group now operates in 16 countries across the Middle East, Asia and Africa.

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.

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It 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.

Uber and Careem’s co-founders Sheikha, Olsson and Abdullah Elyas have the remaining stakes in the super app, a Careem spokesperson said.

In a statement, 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,” said Sheikha. “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.”