Radio cab service provider Meru Cabs is expecting to raise up to Rs 1,371 crore in the next two years, its CEO said on Sunday.
During December 2015 to January 2016, the company achieved cash break-even point, group CEO Siddharth Pahwa said. During FY2015, the cab service recorded net losses worth Rs 3.3 crore. Meru also clocked Rs 280 crore in operating revenues and Rs 33 crore in employee benefits expenses, the Financial Express reported.
"The travel industry is expected to witness inflows of $1.5 billion to $2 billion in the next two years. We will draw money from IVFA (India Value Fund Advisors) or will raise money from investors as and when required. Whatever cash we are generating, we are ploughing it back into the business," Pahwa was quoted as saying by the publication.
Indian Value Fund owns 85 percent stake in the cab company. The emergence of cheaper cab services, such as Ola and Uber, saw a 20 percent fall in the number of Meru customers.
However, in the last few months, Meru cabs saw a five percent rise in customers, even though a larger number of people continue to use Uber and Ola, the Financial Express report added.
The company, which claims to be India's no.1 radio cab service provider, has a fleet of about 32,000 drivers across India. It also has 1,400 Meru taxis and 2,000 vehicles.
According to another Financial Express report published on Feb.10, Meru hopes to be a $1 billion (around Rs 6,800 crore) firm by 2020 on account of expansion of its services.
