World News

Saudi's Kingdom Holding buys $62 mln stake in ride-hailing firm Careem

Prince Alwaleed Bin Talal
Mohammad Obaidi | Bloomberg | Getty Images

Carmaker Daimler and Saudi Arabia's Kingdom Holding, a firm owned by billionaire Prince Alwaleed bin Talal, have taken part in an $150 million investment in Dubai-based ride-hailing
firm Careem.

Venture capital firm DCM Ventures and hedge fund Coatue Management also took park in the Uber-rival's fundraising, Careem said in a statement.

Kingdom Holding, which said in a separate statement it spent $62 million acquiring an 7.11 percent stake, will receive a seat on Careem's board.

Emerging markets-focused private equity firm Abraaj Group said it divested its share in Careem as part of Kingdom Holding's buy in.

Kingdom Holding, which is also an investor in Uber's U.S. rival Lyft, said the Careem deal would have no material impact on the company's results and would be reflected in its financial statements from the second quarter.

The latest fundraising for Careem lifts investment in the firm to $500 million from $350 million last December when government-controlled Saudi Telecom Co. (STC) bought into the company.

Careem Chief Executive Mudassir Sheikha told Reuters in March the firm was considering an initial public offering, as well as acquisitions to help it expand.

Careem operates in 12 countries across the Middle East and North Africa, Turkey and Pakistan.