Exclusive: Mideast Uber rival Careem in early talks to raise new funds-sources

DUBAI (Reuters) - By Hadeel Al Sayegh, Alexander Cornwell and Nawied Jabarkhyl

Middle East ride-hailing app Careem is in early talks to raise as much as $500 million in new funds from investors, sources told Reuters.

Careem, Uber's rival in the region, is checking the appetite of potential investors and hopes to secure its targeted $500 million in a new funding series, three sources said, speaking on condition of anonymity as the matter is not public.

Careem declined to comment when contacted by Reuters on Wednesday.

Some of the funds could go towards new business lines for the company, said one source.

The company, which operates in more than 90 cities, has said it is eager to enter new markets such as Tunisia and Algeria and in February announced the acquisition of restaurant listing reservation platform RoundMenu, which it said it would use to trial food delivery services.

A second source said they were approached by a third party to participate in Careem's latest funding round.

(Editing by Louise Heavens)