There have been all sorts of rumours coming out for Meru. While it was acquisition on cards by Uber earlier, this times, CEO of Meru confirmed to Economic Times that the company is looking to raise a $100 Million round from Hong-Kong and US based hedge funds. Earlier this week, the company secured $50 million from India Value Fund Advisers.
If the company closes the deal, it will become a serious competitor in a fight which is currently between Uber and OlaCabs. It has been aggressively creating partnerships with regional radio taxi operators on a revenue-share basis to rapidly expand its fleet.
Meru Cabs is a Mumbai based company which started operations in 2007. The company has more than 50,000 taxis operating in the nation.
Siddhartha Pahwa, chief executive officer of Meru Cabs said,
We are talking to a new set of investors including Hong Kong and US-based hedge funds to raise $100 million at a valuation of $350 million.
Currently, the Indian radio taxi market is dominated by Uber and OlaCabs. While the cash-rich based Uber continues to market itself aggressively, by slashing prices by as amuch as 40-50%, Ola appeals to its users through the ‘Made In India’ chords. Uber is already valued at over $40 Billion.
As for Ola Cabs, the company recently acquired its smaller rival, TaxiForSure for $200 Million, to fight off Uber’s surging presence in the country. It had earlier secured a $210 Million round from SoftBank at a valuation of $650 million.