Saudi Telecom Company (STC) announced in a stock exchange filing that it has bought a 10-percent stake in the ride-hailing app, Careem for $100 million. Japanese e-commerce firm Rakuten also joins the latest round of investment that makes the company's total valuation to $1 billion.
STC said the investment in the Uber's Middle East rival is in line with its strategy to invest in the innovative digital world.
Founded in 2012 by Mudassir Sheikha and Magnus Olsson, the Dubai-based Carrem operates in 11 countries across the Middle East. In July, Careem announced that it will invest $100M in R&D, which includes growing its team in UAE and Pakistan, and opening new R&D centers in Egypt and Germany.
“Over the last few years, the region has witnessed a surge in technological innovation and has become home to rapidly growing technology startups,” said Magnus Olsson, co-founder and chief navigator, Careem. “These startups are using technology to improve the lives of people in the region. Careem is committed to continue innovating to offer the region a safe and reliable transportation option. In order to do that, we have to double-down on research and development."
