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

As part of e&'s plan to expand consumer digital offerings
UAE’s e& acquires majority stake in Careem Super App for $400 mn
e& continues acquisition spree with Careem Super App purchase (Photo from WAM)

e&, a telecoms and technology firm based in the UAE, has entered into a $400 million deal to acquire a majority stake in Careem Super App, which is a spinoff from Uber. The acquisition is part of e&’s strategy to expand its consumer digital offerings.

In a statement to the Abu Dhabi Securities Exchange (ADX), e& announced that it had signed a binding agreement with Uber for a 50.03% stake in Careem’s Super App business. However, Uber will continue to fully own Careem’s ride-hailing business, which will be available alongside all other services on the existing app for customers. The Careem Super App provides over a dozen services, including food and grocery delivery, micro-mobility, a digital wallet, and FinTech services. It also offers additional third-party services, such as home cleaning, car rental, and laundry.

Read more: Nokia, etisalat by e& reach 100 Gbps fiber broadband

Careem Super App will continue to be managed by its co-founders Mudassir Sheikha and Magnus Olsson, e& said.

“Super apps have catalyzed the economic, social, and cultural growth of emerging markets today,” said Hatem Dowidar, group chief executive of e&.

The transaction cost will be financed from the existing cash balance, e& said.

Abu Dhabi-based e& is rapidly expanding its presence and has been actively acquiring businesses. Last year, it reached an agreement with Abu Dhabi Holding Company (ADQ) to acquire a majority stake in Starzplay Arabia, a video streaming service. This year, the company has further consolidated its position in the Vodafone Group by increasing its stake to 14%, as part of its plan for international expansion.

To access additional news on telecommunications, click here.