M&M to buy 55 percent equity in Meru Cabs.
Stake valued at Rs 201.5 crore.
Meru thus to become a subsidiary of M&M.
Meru still operational in Mumbai, Delhi, Bengaluru and Hyderabad.
Mahindra and Mahindra have filed an intent to purchase a 55 percent stake in Meru Travel Solutions Pvt Ltd. This will make the latter and its subsidiary companies subsidiaries of Mahindra and Mahindra. The value of the stake that M&M will purchase is set at Rs 201.5 crore.
After the first round of investment, Meru Travel Solutions will become a subsidiary of Mahindra and Mahindra, meaning the latter will be able to appoint the majority of directors on the board of Meru. This also means that Meru’s subsidiary companies will come under the Mahindra umbrella. Those companies are Meru Mobility Tech Pvt Ltd, V-Link Automotive Services Pvt Ltd, and V-Link Fleet Solutions Pvt Ltd. The companies have the following turnover for the financial year 2018-19: Meru Travel Solutions (Rs 156.6 crore, consolidated), Meru Mobility Tech (Rs 114.6 crore, standalone), V-Link Automotive Services (Rs 3.3 crores, standalone), and V-Link Fleet Solutions (Rs 46.6 crores, standalone).
Mahindra is interested in increasing its presence in the shared mobility sector, and the purchase of Meru Travel Solutions gives them access to corporate shared mobility space as well. This is the latest in a line of moves M&M has made in the shared mobility space. It had announced its intention to invest up to Rs 176 crore in Zoom Car in February last year, which would work out to be approximately 16 percent stake in the latter company. Zoomcar is keen on using EVs to make up as much of its fleet as it can, and Mahindra’s E2O has been the vehicle of choice so far for the self-drive brand. This February, Mahindra launched a premium ride-sharing service called ‘Glyd’ on select routes in select cities. Glyd uses e-Verito to offer the office-goer a premium commute, complete with WiFi, web-conferencing service, and entertainment options.