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Mumbai-based radio cab service, Meru, has raised $50 Mn (over INR 300 Cr) in a new round of funding led by its existing investor, India Value Fund Advisors (IVF). India Value Fund Advisors (IVFA) had 80% stake in Meru Cabs prior to this round.

The company is also expecting to raise another $100 Mn from new investors including PEs and hedge funds by this month end.

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Meru Cabs was founded by Neeraj Gupta in 2011 and currently, it is operational in 15 cities with a fleet of over 12000 cabs.

Previously, there were rumors that Uber was planning to buy a majority stake in Meru Cabs in order to boost its market share in India. In one of the biggest consolidation in the Indian cab booking space, just a couple of days back Ola had announced the acquisition of TaxiForSure, for $200 Mn earlier. CarzOnRent’s EasyCabs, Taxipixi etc. are other players dealing in this space.

Related: The Evolution Of The Indian Taxi Market – Comparing The Biggies

India’s unorganized taxi market is estimated at $6-8 Bn with about 600,000 commercial vehicles and combined yearly revenue of INR 11,000 Cr. According to Valoriser Consultants, the sector has been growing at 20% annually.

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