​This is how Meru Cabs plans to give Ola and Uber a run for their money

With the increasing competition between the cab service providers in the country, it has become extremely important for them to continue raising cash to stay ahead of their rivals. And perhaps this is what Meru Cabs realised. The Mumbai-headquartered taxi service is in advanced talks with hedge funds Valiant Capital Partners and Falcon Edge Capital to raise Rs 627 crore ($100 million), as The Economic Times report.

The amount raised by Meru will help the India's oldest radio taxi operator to maintain a stronghold in the fight with it’s competitors like Tiger Global-backed Ola and San Francisco-based Uber.

Earlier this week, Meru raised $50 million (Rs 300 crore) from existing investor India Value Fund Advisors (IVFA) in order to finance its expansion plan to operate in 40 cities.

Meru CEO Siddhartha Pahwa said, "We are talking to a new set of investors including Hong Kong and US-based hedge funds to raise $100 million at a valuation of $350 million," said Meru CEO Siddhartha Pahwa.

Besides, Meru, which began operations in 2007, is also associating with regional radio taxi operators on a revenue-share basis to expand its fleet at a faster pace. Currently, it has a fleet of more than 50,000 taxis.
(Image: Meru)