India-based taxi services operator Meru Cabs has received Rs 150m ($25m) from Brand Capital, an investment subsidiary of media group Bennett Coleman & Co (BCC), in a round expected to reach $100m, LiveMint reported yesterday.
Founded in 2007, Meru Cabs lets users book a taxi online and track its location. It also offers a ride-sharing app and is available in 24 cities across India.
The company, which is reportedly breaking even in many of its markets, plans on expanding into 15 additional cities over the next 12 to 18 months. It is particularly considering the north eastern part of the country for expansion.
Siddhartha Pahwa, Meru’s CEO, told LiveMint: “60% to 70% of the money will be used for advertising and providing user incentives which would include discounts, loyalty schemes and providing quality service.”
Meru secured about $50m from private equity firm India Value Fund Advisors, an existing investor, in May 2015.