Hyderabad, April 30: In continuation of its strategic intent to grow its presence in the shared mobility space, Mahindra and Mahindra Ltd (M&M), a part of the USD 19.4 billion Mahindra Group, on Friday announced that it has entered into definitive agreements with shareholders of Meru Travel Solutions Private Limited (Meru) to buy their respective stakes in Meru.
It would acquire 44.14 percent shares from Private Equity investor, True North and others for an amount not exceeding Rs 76.03 crores and 12.66 per cent shares from Mr. Neeraj Gupta and Mrs. Farhat Gupta, for an amount not exceeding Rs. 21.63 crores, the company said in a release.
With this arrangement, M&M will enhance its current shareholding in Meru from 43.20 to 100 per cent.
Meru Cabs, a ridesharing company founded in 2006, has now a significant presence in the airport transfer business, operating in the ride hail segment and providing employee transportation services to corporates in India.
Neeraj Gupta, founder CEO 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 today.
He will continue as an employee until June 30, 2021.
Pravin Shah, who was earlier President Automotive, M&M till March 2017 will be the CEO of Meru and its subsidiary companies, with effect from May 1, 2021.
Commenting on the acquisition, Dr. Anish Shah, MD and CEO, Mahindra Group said, that 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.(UNI)