Mahindra & Mahindra, the homegrown automaker has announced to enter into an agreement with shareholders of Meru Travel Solutions Private Limited (MERU) to buy their stakes in the ride-sharing company. The company has increased its stakes in MERU by acquiring 44.14 percent shares from private investor – True North and others for an amount of Rs 76.03 crores and 12.66 percent from Nerraj Gupta and Farhat Gupta for 21.63 crores.
With this new acquisition, Mahindra has completely acquired MERU by enhancing its current shareholding from 43.20% to 100%. The Indian automaker is planning to expand its reach in the mobility service business with the latest acquisition. Pravin Shah will be the new CEO of MERU. He was earlier President Automotive-Mahindra till March 2017.
Nerraj Gupta, Founder, CEO and Whole Time Director of MERU and its subsidiary company Meru Mobility Tech Private Limited & Director of two other Meru subsidiaries – V-Link Automotive Services Private Limited and V-Link Fleet Solutions Private Limited, has stepped down on April 30, 2021. However, He will continue as an employee untill June 30, 2021.
Commenting on the acquisition, Anish Shah, MD and CEO, 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.”
Founded in 2006, MERU Cabs had started the trend of cab booking over phone by offering AC Cab service at your doorstep. The company has also introduced electric vehicles in its fleet and has a wide network at airports.
