The world’s biggest luxury-car maker Diamler AG along with Saudi billionaire Prince Alwaleed bin Talal are the latest to invest in Careem as the ride-hailing company raised $500 million in Series E fundraising.
Careem revealed that it has raised $150million to close the second round of the Series-E funding. Earlier in December, the Dubai-based ride hailing company raised $350 million from investors, including Japan’s Rakuten Inc and Saudi Telecom Co, during the first tranche of fundraising.
DCM Ventures and New York-based Coatue Management LLC took part in the second round of fundraising, valuing Careem at $1billion.
As a part of the investment deal, Alwaleed’s investment company Kingdom Holding, which said in a separate statement it spent $62 million acquiring an 7.11 per cent stake, will get a seat on Careem’s board, the ride-hailing company said in a statement.
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.
CEO Mudassir Sheikha told Bloomberg that the company could consider selling shares publicly by 2019.
“With our investment in Careem, we are now taking the strategic step to becoming the world’s leading provider of mobility services,” said Daimler Financial Services AG CEO Klaus Entenmann in a statement. “Careem has quickly leapt to the leadership of ridesharing within the MENA regions by delivering rapid innovation and customer growth, and it is spearheading new ways to transport people from point A to point B.”
The investment comes at a time when Careem’s arch rival Uber is facing multitude of crisis, including a publicised sexual harassment spat that lead to Uber’s CEO taking a leave of absence.
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.
This article originally appeared on Bloomberg