The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

20VC: The $3.1BN Meeting That Led to an Uber Acquisition, The Battle With Uber; How to Outcompete When You Have 10x Less Cash & The Marketing Campaigns That Led to Pakistan MDs Fleeing and Elon Musk Fanboying with Mudassir Sheikha, CEO @ Careem

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Sep 4, 2023

Mudassir Sheikha, CEO and Co-founder of Careem, shares insights from his journey scaling the ride-hailing service to a $3.1BN acquisition by Uber. He discusses the pivotal moment that sparked Careem's creation and the crucial mistakes founders make in achieving product-market fit. Mudassir reveals how Careem outcompeted Uber with a fraction of their budget, offering advice for startups facing well-funded rivals. He also reflects on navigating complex negotiations with Uber while maintaining company culture and the challenges of leading in a developing market.

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ANECDOTE

Karachi Childhood

Mudassir Sheikha grew up in Karachi, Pakistan, facing daily challenges like water and power shortages.
This upbringing taught him resilience and a drive to overcome friction, inspiring him to build something impactful.

INSIGHT

Founding Careem

Careem's founding wasn't driven by a single "aha" moment but by co-founders' desires to build something meaningful.
Magnus Olsson's near-death experience and Mudassir Sheikha's reflection on Pakistan's lack of large institutions fueled their ambition.

ANECDOTE

Pakistan's Business Landscape

Mudassir Sheikha believes Pakistan's lack of large companies stems from daily friction hindering potential and a lack of self-belief.
Many talented individuals end up working for multinationals or leaving the country due to this.

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Mudassir Sheikha is the CEO and Co-Founder of Careem. Over the last 11 years, Mudassir has scaled the service to more than 80 cities in 10 countries, with 1,400+ colleagues and more than 2.5 million Captains. With such success, in 2020 Uber announced they would be acquiring Careem for a reported $3.1BN. Prior to Careem, Mudassir co-founded “DeviceAnywhere”, a company that was acquired by “Keynote” in 2008 before joining the management consulting firm “McKinsey & Company” in Dubai.

In Today's Episode with Mudassir Sheikha We Discuss:

1. From McKinsey to $3.1BN Exit to Uber:

What was the founding a-ha moment for Mudassir with Careem?
What does Mudassir know now that he wishes he had known at the beginning?
What does Mudassir believe he is running away from?

2. Finding Product-Market Fit:

What is the single biggest mistake founders make when trying to find product-market fit?
Does Mudassir believe you have to do things that do not scale, to scale? What did Careem do?
What are some of Mudassir's biggest pieces of advice to founders on finding a core target audience and doing customer discovery the right way?

3. Competing with Giants: How To Win When You Cannot Outspend:

How did Careem beat Uber when they had 1/100th of their budget?
What advice does Mudassir have for founders who have competition that is much better funded?
What is the story of spending the night in bunk beds and barely sleeping before raising $300M the next day? How did that happen?

4. The Acquisition: How it Went Down:

How did Mudassir and Dara @ Uber first come to meet?
How did Dara's approach contrast with the prior approach of Travis Kalanick?
Why did Mudassir decide to sell and join Uber?
What were the main reasons or arguments against the acquisition?

5. Talk to me About:

Careem's Pakistan MD having to flee Pakistan for his safety post a marketing campaign?
Elon Musk likes one of Careem's promotional videos and why?
An investor who wired $1M with absolutely no paperwork?
The catch up meeting that turned into a $3BN offer?