Mahindra and Mahindra fully acquires Meru Cabs
Mahindra and Mahindra has fully taken over the app-based cab service Meru after it concluded a deal to increase its stake to 100 percent. Mahindra previously held a 43.20 percent stake in the company.
After finalizing the deal, Mahindra and Mahindra stated this move is an extension of its strategic plan to expand its presence in the shared mobility area. To buy out the stakes, Mahindra and Mahindra will spend about ₹98 crore.
The company will hold 44.14 percent shares from private equity investor True North and others for a sum not exceeding ₹76.03 crore. Apart from this, it will also have to acquire 12.66 percent shares from Neeraj Gupta and Farhat Gupta, the husband-wife pair who launched the cab service, for an amount not exceeding ₹21.63 crore.
Commenting on the development, Anish Shah, Managing Director and Chief Executive Officer (CEO) at Mahindra Group, said, “At the outset, I would like to thank Neeraj Gupta and the team at Meru for building a pioneering brand in the shared mobility space in India. Our association with Meru is built on our compelling strategy to scale our shared mobility businesses.”
Pravin Shah will be appointed as the new CEO of Meru and its subsidiary companies, while Neeraj Gupta, founder and CEO of Meru and its subsidiary companies, will continue as a regular employee now. Pravin Shah was previously the president of Mahindra and Mahindra Automotive till March 2017.
Established in 2006, Meru Cabs has a broad variety of vehicles ranging from hatchbacks, economy and luxury sedans to premium SUVs and buses, including electric vehicles (EVs). The cab operator serves both intra and inter-city travel, as well as airport and car rental services. Meru operates the second-largest group of EVs in the country with more than 350 electric vehicles operational across Mumbai and Delhi.
The acquisition will take Meru Cabs to new heights and will also help the company in significantly growing its business.Shishir Gupta, Founder and CEO, StartupLanes
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