Neeraj Gupta | The expressway to taxi rank and success

Neeraj Gupta, founder of Meru Cab Co. Pvt. Ltd, India’s largest radio taxi company, prefers auto rickshaws and trains to cars. “There is a ready chauffeur and less time is wasted.”

Investment bankers estimate Meru's valuation at about ₹ 850 crore. From being unemployed to building a company that garnered ₹ 450 crore in revenue in 2013-14, Gupta has come a long way.

He did almost nothing for five years after his graduation from Mithibai College in Mumbai. “My wife got a job at Jet Airways right after college and my only job for the next five years was to pick her up from the airport everyday,” he said.

Gupta's wife is his college sweetheart. “She did not have anything to say when people would ask her what her husband does,” said Gupta with a laugh.

His wife lent him ₹ 50,000 to set up a garage in Andheri. And like they say, behind every successful man stands a woman. Gupta realized that business is what he wanted to do. In 1999, he started a garage named Elite Class. He used to offer vehicle repairs and annual maintenance services to customers.

Then in 2001, he set up V-Link Automotive Services Pvt. Ltd, which supplied vehicles to firms. “Tata Infotech Ltd approached us to provide bus service. It all began with a bus, a driver and a cleaner,” he recalled. V-Link still offers vehicle services to companies under the same brand.

Six years later, Gupta launched Meru Cab. “When we decided to start Meru, we needed funding and India Value Fund stepped in to help,” Gupta said. He counts every penny. “India Value wanted to splurge on branding and at that time I felt spending so much on branding is not worth it. Now, I feel it was all important.” India Value Fund has invested about ₹ 200 crore in the company.

Now Meru has a fleet of 9,000 cars doing 30,000 trips a day in six cities. Meru was among the first to enter the radio taxi business in India.

When asked how he plans to beat competition, with several radio taxi operators such as Olacabs and Tabcab in the space, Gupta said, “Customers do not want the moon. They want basic services to be offered in the most convenient way possible. And we are just going to do that.”

Business and education are the two things that are close to his heart which is evident from his investment strategy. For instance, he has invested an undisclosed amount in Motor Education and Training Association Pvt. Ltd, which trains drivers in driving and road safety. “There is a shortage of skilled drivers as people do not want to spend on training. I think there is a need to educate and train people,” said Gupta.

As a step forward towards diversifying the business, other than investing in Motor Education, he has invested in Freshkins Foods Pvt. Ltd, a company that sources fresh fruits and vegetables from farmers. “The idea is to tap into the business areas that remain fragmented. And this is one such area,” he added.

Though he is a no-frills guy and prefers trains for commute, he owns a Mercedes Benz M-Class thanks to his two daughters who wound him around their little fingers to buy one.

When asked if his daughters would lead the organization once he decides to take a back seat, he said Meru would be professionally driven, which it is even now as he likes an off-the-cuff approach at work. “I just want them to study well. Education is important in shaping one’s personality. I wish I had studied more,” said Gupta regretfully. Nevertheless, he has done well for himself without a fancy degree.

“I was plain lucky. One should not leave too much on luck,” he is quick to respond.