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Mahindra and Mahindra on Friday said it has inked a pact with shareholders of Meru to increase its stake to 100 percent in the ride-hailing service provider.

The auto major said in continuation of its strategic intent to grow its presence in the shared mobility space, the company has entered into definitive agreements with shareholders of Meru Travel Solutions Pvt Ltd (Meru) to buy their respective stakes in the ride-hailing services provider.

M&M will acquire 44.14 percent shares from private equity investor True North and others for an amount not exceeding Rs 76.03 crore and 12.66 percent shares from Neeraj Gupta and Farhat Gupta, for an amount not exceeding Rs 21.63 crore, it added.

With this arrangement, M&M will enhance its current shareholding in Meru from 43.20 percent to 100 percent.

“At the outset, I would like to thank Neeraj Gupta and the team at Meru for building a pioneering brand in the shared mobility space in India. Our association with Meru is built on our compelling strategy to scale our shared mobility businesses,” Mahindra Group Managing Director and Chief Executive Officer (CEO) Anish Shah said.

With M&M taking over, Neeraj Gupta, Founder, CEO, and Whole Time Director of Meru and its subsidiary company Meru Mobility Tech Pvt Ltd and Director of two other Meru subsidiaries – V-Link Automotive Services Pvt Ltd and V-Link Fleet Solutions Pvt Ltd, will be stepping down effective close of business hours of April 30, 2021.

He will continue as an employee until June 30, 2021.

Pravin Shah, who was earlier President Automotive, M&M till March 2017 will be the CEO of Meru and its subsidiary companies, with effect from May 1, 2021, the auto major noted.

Meru Cabs, a ridesharing company founded in 2006 revolutionised the way people traveled in cabs by offering AC cabs at their doorstep with a single call.

Currently, it has a significant presence in the airport transfer business, operating in the ride-hail segment and providing employee transportation services to corporates in India.