Mahindra and Mahindra to take 100% ownership of Meru Cabs in INR 98cr deal
Mahindra and Mahindra (M&M) will take full ownership of Meru Travel Solutions, the parent of Indian ridesharing company Meru Cabs, for a total of INR 97.66 crores.
In this regard, the Mahindra Group-owned Indian automotive manufacturer will acquire a 44.14% stake from True North and others for up to INR 76.03 crores and a 12.66% stake from Neeraj Gupta and Farhat Gupta for up to INR 21.63 crores.
Mahindra and Mahindra currently has a stake of 43.2% in Meru Cabs.
Founded in 2006, the ridesharing company offers AC cabs at customers’ doorstep with a single call. Meru Cabs currently is said to have a considerable footprint in the airport transfer business.
Mahindra and Mahindra to take 100% ownership of Indian ridesharing company Meru Cabs. Photo courtesy of Meru Mobility Tech Private Limited.
Neeraj Gupta – founder CEO and Whole Time Director of Meru Travel Solutions and its subsidiary company Meru Mobility Tech and Director of two other subsidiaries – V-Link Automotive Services and V-Link Fleet Solutions will be stepping down at the end of this month.
Pravin Shah, a former Automotive President at Mahindra and Mahindra will be the CEO of Meru Travel Solutions and its subsidiary companies from 1 May 2021.
Dr. Anish Shah – MD and CEO of 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 has agreed to take this critical responsibility of the business and to develop sustainable and scalable business strategies.”