Mumbai-based radio taxi service, Meru cabs has raised $50 million from its existing investor India Value Fund Advisors (IVF). The company is also expecting to raise another $100 million by the end of this month through a new set of investors. India Value Fund Advisors (IVFA) owns around 80 percent stake in Meru Cabs prior to this round.
In order to stand up to the app based cab booking services, it had launched its own app. In October 2014, Meru Cabs had launched a Mobile Wallet feature with participation from Citrus. The app is having a Zero-click checkout feature that allows users to book a cab, and payment of the trip is automatically deducted from the wallet once the ride is over and also used at third party retailers.
India’s current taxi market estimated at $6-8 billion, comprises 600,000 commercial vehicles and combined yearly revenue of Rs 11,000 crore. The sector has been growing at 20% annually, as per Valoriser Consultants.
Founded in 2011 by Neeraj Gupta, Meru Cabs currently having its operations in 15 cities with a fleet of about 12,000 cars, of which it directly owns about 6,000. In February this year, there were rumors that Uber is looking to acquire Meru Cabs to boost its market share in India. Earlier this month, Ola (formerly Olacabs), had announced that it has acquired its competitor TaxiForSure for $200 mn in a cash and equity deal. The other players dealing in this space includes Taxipixi and CarzOnRent’s EasyCabs.