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.
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.
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