Al Tayyar Travel Group, the Middle East’s leading technology-powered travel and tourism company, has announced that it will divest its investment in Careem, the leading ride-hailing app in Mena, with an exit value of SR1.78 billion ($474.58 million).

 

The move is in connection with the acquisition of Careem by Uber Technologies, a San Francisco headquartered transportation network company.

 

The net proceeds from the sale will be received partly in cash and partly in convertible notes in Uber, which are subject to the satisfaction of terms and conditions. The acquisition of Careem’s business in each country is subject to applicable regulatory approvals. The transaction is expected to close in Q1, 2020.

 

Commenting on the milestone moment, Abdullah Aldawood, CEO of Al Tayyar Travel Group, said:

“This is a historic moment for the Middle East tech space. It is the largest tech deal in the region and a milestone that will provide the stimulus to grow the digital ecosystem and attract more foreign investments.

 

“As the largest corporate shareholder and one of the earliest investors in Careem, we have always been firm believers in the company and its vision to be an enabler on both the economic and social front – and that is exactly what Careem is today, it has facilitated and improved the lives of millions of people. Getting to this point was the culmination of the hard work, determination and forward-thinking vision of the Careem team and the unwavering support and guidance from us at the group,” he said.

 

”We believe the region is ripe for the development of other tech-enabled travel services and solutions. More specifically, we believe in opening up the opportunity of consumer travel, and this is where we are focused today.”

 

Careem is only one of ATG’s success stories. Its online travel platforms have grown from almost SR40 million in 2015 to more than SR2.0 billion in 2018. “We are committed to investing in our technology and platforms to enhance and grow our consumer travel business brands Almosafer and Tajawal. We are also leveraging our technology and data to help ease and enhance the journey for the millions of Muslim pilgrims to the kingdom and professionalise the service in the kingdom, with our newly launched Haj and Umrah business,” added Aldawood.

 

The group first invested in Careem in December 2014 and was one of the early institutional investors in the Middle East, Turkey and Pakistan’s leading ride-hailing service. It has continued to be an active investor supporting the company and its founders. Abdullah Aldawood has been a member of the Board of Directors of Careem since December 2014. – TradeArabia News Service