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One of India’s leading homegrown automobile brands, Mahindra & Mahindra recently announced the increase of its shareholding in Meru Cabs with a fresh investment of INR 98 Crore. Prior to this, they were holding only 43.2% of Meru’s shares.
But now, Mahindra & Mahindra has complete ownership of Meru Cabs by acquiring 44.14 percent shares from a private investor – True North and others for Rs 76.03 crores and 12.66 percent from Neeraj Gupta and Farhat Gupta for 21.63 crores.
With this latest development, Mahindra & Mahindra has entered into mobility business service. Pravin Shah, who was earlier the President Automotive of Mahindra, will now be the CEO of Meru Cabs.
Neeraj 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 will continue as an employee until June 30, 2021. He remarked, "The last two decades in the mobility industry, building Meru to become a household name in the country has been exhilarating. The time is right for me to pursue newer interests and hand over Meru in the safe hands of the Mahindra Group, one of the finest corporate houses in the country. Under the able leadership of Dr. Anish Shah, I am confident that Meru will rise to greater heights in the times to come."
Anish Shah, MD and CEO, Mahindra Group said about the latest acquisition, “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.”
05-05-2021
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