Mahindra has announced that it has entered into agreements with shareholders of Meru Travel Solutions Private Limited (Meru) to buy their respective stakes in the ride-sharing company.
Mahindra will acquire 44.14% shares from Private Equity investor, True North and others for an amount not exceeding Rs. 760.3 million (US$ 10.2 million). It will acquire 12.66% shares from Mr Neeraj Gupta and Mrs Farhat Gupta for an amount not exceeding Rs. 216.3 million. With this arrangement, Mahindra will enhance its current shareholding in Meru from 43.20% to 100%.
Meru Cabs is a ride-sharing company founded in 2006. It has a presence in the airport transfer business, operating in the ride-hail segment and providing employee transportation services to corporates in India.
Neeraj Gupta, founder, chief executive officer and Whole Time Director of Meru and its subsidiary company Meru Mobility Tech Private Limited and Director of two other Meru subsidiaries - V-Link Automotive Services Private Limited and V-Link Fleet Solutions Private Limited, will be stepping down effective close of business hours of April 30, 2021. He will continue as an employee until June 30, 2021.
Pravin Shah, who was President Automotive, Mahindra till March 2017 will be the chief executive officer of Meru and its subsidiary companies, with effect from May 1st, 2021.