Ride-hailing service provider Meru Cabs is mulling to raise Rs 350-400 crore from a group of private equity investors over the next 6-9 months.
The Mahindra Group-backed cab operator's fundraising plan comes at a time when Meru Cabs is fine-tuning its focus on offering cab services to corporates and widening its base of electric vehicles in the country.
"We are in the process of making a business plan and will be ready with it by January-February, after which we will tap the PE players," Neeraj Gupta, founder and managing director of Meru Mobility, told the Economic Times.
"While we are adopting a wait-and-watch policy on the direction the mobility business will take post the pandemic, we are sure once the vaccine comes, the mobility business will take off much more strongly," he added.
Mahindra had said earlier that it would consider an initial public offering (IPO) for its mobility unit, which Meru is a part of, to unlock value of the business. The company said it is targeting to make its mobility business a $1 billion offering over the next 3-4 years.
These comprise the businesses of Meru, Alyte and Glyd, each of which will consider having EVs as 30% of their fleet.
Meru's EV plans are already underway, with the company working towards creating infrastructure to manage a fleet of more than 300 EVs across India, with the eventual aim of expanding this fleet size to 10,000.