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Dubai-based ride-hailing service Careem on Sunday said it had acquired RoundMenu, an online restaurants platform, and will start trial for food delivery service as part of its wider investment into the food delivery category.
The deal’s value was not disclosed.
“Careem will begin testing a delivery capability for RoundMenu customers on a small scale later this month,” the firm said in a statement to Argaam.
RoundMenu was first funded and launched with HoneyBee Tech Ventures, followed later by other institutional investment from BECO Capital, Horeca Trade and Middle East Venture Partners, the statement said. A total of $3.1 million investment was raised, it added.
The UAE-based restaurant listing and reservation online platform has a presence in 18 cities across nine Arab countries, including five cities in Saudi Arabia, according to its website.
Careem, which is said to be considering a potential initial public offering (IPO), has been seeking to expand operations and diversify business streams.
In May last year, Careem launched in Dubai delivery service called Box, which allowed customers to send small sized items across the city.
“(Careem) will continue to look at other verticals that can be powered by their technology and ground transportation logistic capabilities,” the statement added.
Other notable acquisitions by Careem are Morocco-based taxi company, Taxii, in May 2015; and Saudi address coding service Enwani in June 2015.
Also last year, the firm invested in Egypt’s bus transportation network, Swvl, buying a minority stake in the startup.
Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com
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