Firms/companies > M > Mahindra & Mahindra
Mahindra acquires all of Meru Cabs with fresh investment of Rs98 crore
03 May 2021
Mahindra & Mahindra has acquired the remaining 56.80 per cent shares in Meru Travel Solutions Limited (Meru Cabs), with a fresh investment of Rs98 crore, to take full control of the shared mobility business as the automotive major expands into new markets and finds new markets for its vehicles.
Mahindra acquired 44.14 per cent shares in Meru Cabs owned by private equity investor True North and others for Rs76.03 crore and 12.66 per cent shares from Neeraj Gupta and Farhat Gupta for Rs21.63 crore. With this acquisition, Mahindra now owns 100 per cent stake in Meru.
Mahindra and Mahindra Acquires 100% Stake in Meru Cabs indianautosblog.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from indianautosblog.com Daily Mail and Mail on Sunday newspapers.
Synopsis
Mahindra & Mahindra wants its footprint in the entire mobility solutions business with a focus on making its fleet all electric, where return on investment is still low
ETtech
Illustration: Rahul Awasthi
All eyes are on what Mahindra & Mahindra will do with its shared mobility business after the Mumbai-based conglomerate last week bought out radio taxi fleet Meru, ending the latter’s run as independent entity that had lagged in competing against ride hailing platforms Ola and Uber.
M&M wants its footprint in the entire mobility solutions business with a focus on making its fleet all electric, where return on investment is still low. Industry experts, however, say this will prove to be a challenge for the utility and tractor maker.
M&M to increase stake in cab service Meru to 100%; True North, others exit
Meru screenshot
May 3, 2021
Mahindra and Mahindra Ltd (M&M) said that it has agreed to buy the shares it didn’t already own in Meru Travel Solutions Pvt. Ltd (Meru) from existing shareholders.
This would take M&M’s stake in Meru to 100% from 43.2%. M&M will acquire 44.14% shares from private equity investor True North and others for an amount of ₹76.03 crore and 12.66% shares from founder Neeraj Gupta and promoter Farhat Gupta, for ₹21.63 crore.
Neeraj Gupta, chief executive officer of Meru and its unit Meru Mobility Tech Pvt. Ltd, will be stepping down from his position and will continue as an employee until 30 June.
linkedin In continuation of its strategic intent to grow its presence in the shared mobility space, Mahindra & Mahindra has entered into definitive agreements with shareholders of Meru Travel Solutions (Meru) to buy their respective stakes M&M is to acquire 44.14% shares from private equity investor, True North and others for an amount not exceeding Rs 76.03 crore and 12.66% shares from Neeraj Gupta and Mrs. Farhat Gupta, for Rs 21.63 crore. Set up in 2006, Meru Cabs revolutionised the way people travelled in cabs by offering AC cabs at their doorstep with a single call. Today, Meru has a significant presence in the airport transfer business, operating in the ride hail segment and providing employee transportation services to corporates in India.