Mahindra & Mahindra's experience of financing Ola and Uber will benefit the company in its acquisition of Meru Cabs, said V Ravi, chief financial officer, Mahindra & Mahindra Financial Services.
Mahindra & Mahindra (M&M) is buying a 55 percent stake in ride-hailing firm Meru Travel Solutions for a cash consideration of up to Rs 201.5 crore.
The company signed a share subscription and shareholder agreement on Saturday for subscribing up to 55 percent of equity share capital of Meru in tranches, M&M said in an exchange filing.
Talking about the acquisition, Ravi said, “We finance the drivers who would like to own the taxi service and have brought in some innovative schemes. So, we have an experience of financing Ola, Uber and have a substantial market share there and so would be benefited by the acquisition of Meru by their parent company.”
With regards to acquisition of Ideal Finance, Ravi said the company is looking at taking 58 percent shareholding in the Sri Lankan company.
“Sri Lanka is more like an Indian market. We have tremendous knowledge of operating in all states. To some extent, Sri Lanka resemble South India, particularly Kerala. So, we would be starting on a strong wicket,” he said.
“Ideal Finance is a big conglomerate. They have tremendous experience, they have a finance company, a dealership and their dealership is a market leader for selling Mahindra Products in Sri Lanka with a 50 percent market share and a high customer database, and so we will be benefited by this acquisition,” he added.