Meru Cabs raises Rs 300 crore from IVFA

BENGALURU: Meru Cabs has raised $50 million (over Rs 300 crore) in fresh funding from its majority shareholder India Value Fund Advisors (IVFA) to finance its expansion plans. In the new fiscal year, it plans to ply in 40 cities -twice the number of cities it currently operates in.

The company, which faces stiff competition from relative newcomers Uber and Ola, is also looking at raising another $100 million from a new set of investors next month, said Meru Cabs CEO Siddhartha Pahwa.

IVF holds more than 75% of the shares in the company while the top management and founder Neeraj Gupta own the rest. If the company manages the new round of funding, the existing shareholders will dilute their stakes. "No one is planning to exit the company," Pahwa said. Meru had raised $30 million in 2012-13.