Mahindra and Mahindra have fully acquired the ride-hailing service provider Meru Cabs after it finalized a deal to raise its stake to 100 percent on April 30. Mahindra earlier used to hold a 43.20 percent stake in the company. After finalizing the deal, Mahindra and Mahindra said this move is in continuation of its strategic intent to grow its presence in the shared mobility space. To buy out the stakes, Mahindra and Mahindra will spend around ₹98 crores.
The Indian car manufacturer will acquire 44.14 percent shares from private equity investor True North and others for an amount not exceeding ₹76.03 crore. Besides this, it will also have to buy 12.66 percent shares from Neeraj Gupta and Farhat Gupta, the husband-wife duo who founded the cab service, for an amount not exceeding ₹21.63 crore.
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 the new CEO of Meru and its subsidiary companies from today, while Neeraj Gupta, founder CEO of Meru and its subsidiary companies, have stepped down to continue as an ordinary employee now. Pravin Shah was earlier the president of Mahindra and Mahindra Automotive till March 2017.
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Neeraj Gupta, Founder CEO and Whole Time Director- Meru said, “The last two decades in the mobility industry, building Meru to become a household name in the country has been exhilarating. The time is right for me to pursue newer interests and hand over Meru in the safe hands of the Mahindra Group, one of the finest corporate houses in the country. Under the able leadership of Dr. Anish Shah, I am confident that Meru will rise to greater heights in the times to come.”
Founded in 2006, Meru Cabs has a wide fleet of vehicles ranging from hatchbacks, economy and luxury sedans to premium SUVs and buses, including electric vehicles (EVs). The cab operator caters to both intra- and inter-city travel, besides airport and car rental services. Meru operates the second-largest fleet of EVs in the country with over 350 electric vehicles operational across Mumbai and Delhi.