Mahindra and Mahindra has fully acquired the app-based cab service Meru after it finalized a deal to raise its stake to 100 per cent on Friday. Mahindra earlier used to hold 43.20 per cent 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 crore.
The Indian car manufacturer will acquire 44.14 per cent 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 per cent 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, has stepped down to continue as an ordinary employee now. Pravin Shah was earlier the president of Mahindra and Mahindra Automotive till March 2017.
Established 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.