trending Market Intelligence /marketintelligence/en/news-insights/trending/dYD1LY3dDARvLDLA8XT9zw2 content esgSubNav
In This List

Mahindra to acquire 55% stake in Indian ride-hailing company Meru

Blog

Using ESG Analysis to Support a Sustainable Future

Video

S&P Capital IQ Pro | Powered by Expert Insights

Blog

Q&A: Streamlining Analytics for TCFD Reporting

Blog

Evergrande and the wider impact: a sentiment analytics based perspective


Mahindra to acquire 55% stake in Indian ride-hailing company Meru

Indian carmaker Mahindra & Mahindra Ltd. has agreed to acquire up to 55% of local ride-hailing company Meru Travel Solutions Pvt. Ltd. for a cash consideration of up to about 2.02 billion Indian rupees, according to an Aug. 31 stock exchange filing.

The companies entered into a share subscription and shareholder agreement that would see Mahindra subscribing to Meru shares in tranches.

Under the first tranche, which is expected to close by October-end, Mahindra will have the right to appoint a majority of the directors on Meru's board.

Meru will become a subsidiary of Mahindra, along with the ride-hailing company's other units: Meru Mobility Tech Pvt. Ltd., V-Link Automotive Services Pvt. Ltd. and V-Link Fleet Solutions Pvt. Ltd.

Following the investment, Mahindra will have the option to acquire shares from Meru's existing investors for up to 980 million rupees.

Mumbai-based Meru was one of the first radio taxi operators in the ride-hail segment in the country, according to the filing. The company, which was founded in 2006 and now also offers corporate transportation solutions, generated 1.57 billion rupees in revenue for the year ended March 31.

As of Aug. 30, US$1 was equivalent to 71.55 Indian rupees.