Meru Cabs has announced that it has raised a new round of funding of Rs.150 crore (USD 25 million) from Brand Capital, the investment arm of Bennett, Coleman and Co. Ltd (BCCL). Meru will use these funds to further strengthen its foothold in the Indian market with a focus on providing quality service based on a sustainable business model.
Since May 2015, when Meru last raised Rs.300crore (USD 50 million) from its existing investor India Value Fund Advisors (IVFA), the taxi service has expanded to 24 additional cities, launched four unique services, and grown its fleet size to 20,000 vehicles. Meru will be deploying these funds primarily to increase brand salience and brand awareness with the aim of widening its customer base.
Commenting on the investment, Siddhartha Pahwa, CEO, Meru Cabs said, “Meru has been working on a sustainable business model since its inception and has grown its operations across cities as well as continued to provide varied services. With the ongoing transformation in the taxi industry, this move is in line with the company's efforts to showcase its services to a larger customer segment via a bouquet of media channels.”
Speaking on the occasion, Shrenik M Khasgiwala - Director, Brand Capital said, “Meru’s profitable and growing business, strong technology and analytics driven platform complemented by an experienced management team were strong and attractive determinants to partner with the company in this high growth consumer facing industry. We are confident that this partnership will help accelerate the process of creating the requisite brand positioning as well as awareness for customers who are present across mediums/platforms like Print, OOH, digital, social media etc.”