The Abraaj Group, a leading investor operating in growth markets, divested its shares in Careem, one of the region’s leading transportation businesses, to Kingdom Holding Company.
Founded in Dubai in 2012, Careem has grown to be one of the leading transportation and ride hailing businesses across the Middle East, North Africa, Turkey and Pakistan (MENATP) region. The company originally established a web-based car booking service for corporate clients in the United Arab Emirates. It evolved rapidly into the region’s dominant provider with continued ambitions to reshape the region’s transportation and “people logistics” space. Careem has achieved steady double digit growth since inception and continues to expand. As of June 2017, Careem is active in over 80 cities, up from 20 at the time of Abraaj’s investment in 2015.
The MENATP region represents a compelling investment opportunity given the size of the consumer market and the industry’s pace of growth. Careem is a unique homegrown regional champion. By continuously innovating and tailoring its offerings for the local market, such as the first to offer cash payments in markets where credit card penetration is low, and enabling passengers to pre-book services, Careem continued to hold and gain market share across its target cities.
Abraaj closely partnered with Careem and its management team through a critical phase of the company’s growth. Abraaj helped drive and increase corporate client outreach through its strong regional networks, accelerated strategic hiring, and supported Careem in its expansion into new markets.
Ahmed Badreldin, partner and head of Middle East and North Africa at Abraaj, said: “We recognized the opportunity for Careem to scale and rapidly grow its offering across the region. We are proud of the rapid advancements Careem has made based on our investment and partnership. The markets in which Careem operates benefit from a combined GDP of $3.6 trillion, representing a populous and connected economy, and one that will increasingly benefit from the services that Careem provides. We wish Careem, its investors and new partners every success as they continue to take this dynamic business forward.”
Mudassir Sheikha, co-founder of Careem added: “The Abraaj Group has been a great partner for us over the past two years, and the company’s unique regional insights and global resources has been a major contributor to our current success. We will continue to expand, innovate, lead and serve our mission of simplifying the lives of people in the region.”
The Abraaj Group manages $10 billion in assets and is focused on investment strategies across private equity, private credit, impact investing and real estate.