Mumbai-based cab service provider Meru Cabs has raised $25 million (about Rs.150 crore) from Brand Capital, the investment arm of Bennett, Coleman and Co. Ltd. (BCCL). The cab operator will use the fresh funds to strengthen its foothold in the Indian market with a focus on providing quality service based on a sustainable business model.
“Meru will be deploying these funds to increase brand salience and brand awareness with the aim of widening its customer base,” said the company in a statement.
The fresh funding announcement from Meru comes one year after its previous funding round. In May 2015, Meru had raised $50 million (about Rs.300 crore) from its existing investor India Value Fund Advisors (IVFA).
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“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,” said Mr. Siddhartha Pahwa, CEO, Meru Cabs.
According to the company, India’s organised taxi-hailing market presently at $1.2 billion (about Rs 7,900 crore) and is estimated to reach $15 billion by the year 2022.
Meru Cabs which started its operation in April 2007 has expanded to 24 cities and has grown its fleet size to 20,000 vehicles. The company also claims to be the only profitable cab service company in India.
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Last year Meru Cabs had formed an alliance with French taxi service provider Taxis G7 to expand its service in India. The company also operate Meru Eve-a cab service exclusively for and by women.
“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,” said Mr. Shrenik M Khasgiwala - Director, Brand Capital.
Times group and Brand Capital, the investment arm of Bennett, Coleman and Co. Ltd (BCCL) has been very aggressive in investing in the new age companies. In March last, Times Internet, the digital arm of the Times of India Group had invested an undisclosed amount in another app-based taxi hailing company Uber to support Uber’s expansion in India. According to media reports Brand Capital, had also invested in India’s leading e-commerce players Snapdeal. Earlier this month, there were reports of BCCL buying stake in India’s largest e-commerce player Flipkart.