Installation of memcache 1.4.1 fails

[pahnin]

gem install memcache
or bundle update fails with error which says some unit test failed

Here is the error log:
The part which I think would be useful
CXXLD clients/memstat CXX libtest/unittest.o g++ -DHAVE_CONFIG_H -I. -I. -g -pthread -pipe -std=gnu++98 -O2 -fvisibility=hidden -fvisibility-inlines-hidden -pedantic -Wall -Wundef -Wshadow -fdiagnostics-show-option -floop-parallelize-all -Wstrict-aliasing -Wswitch-enum -Wextra -Wformat -Wno-format-nonliteral -Wno-format-security -Woverloaded-virtual -Wnon-virtual-dtor -Wctor-dtor-privacy -Wno-long-long -Wmissing-declarations -Wframe-larger-than=32768 -Wredundant-decls -std=gnu++98 -c -o libtest/unittest.o libtest/unittest.cc CXXLD libtest/unittest libtest/.libs/libtest.a(libtest_libtest_la-memcached.o): In functionMemcached::get_pid(bool)':
/home/phanindra/.rvm/gems/ruby-2.0.0-p247@circle/gems/memcache-1.4.1/ext/libmemcached-0.51/libtest/memcached.cc:95: undefined reference to libmemcached_util_getpid' /home/phanindra/.rvm/gems/ruby-2.0.0-p247@circle/gems/memcache-1.4.1/ext/libmemcached-0.51/libtest/memcached.cc:100: undefined reference tomemcached_strerror'
/home/phanindra/.rvm/gems/ruby-2.0.0-p247@circle/gems/memcache-1.4.1/ext/libmemcached-0.51/libtest/memcached.cc:91: undefined reference to libmemcached_util_getpid' libtest/.libs/libtest.a(libtest_libtest_la-memcached.o): In functionMemcached::ping()':
/home/phanindra/.rvm/gems/ruby-2.0.0-p247@circle/gems/memcache-1.4.1/ext/libmemcached-0.51/libtest/memcached.cc:128: undefined reference to libmemcached_util_ping' /home/phanindra/.rvm/gems/ruby-2.0.0-p247@circle/gems/memcache-1.4.1/ext/libmemcached-0.51/libtest/memcached.cc:133: undefined reference tomemcached_strerror'
/home/phanindra/.rvm/gems/ruby-2.0.0-p247@circle/gems/memcache-1.4.1/ext/libmemcached-0.51/libtest/memcached.cc:124: undefined reference to libmemcached_util_ping' collect2: error: ld returned 1 exit status make[1]: *** [libtest/unittest] Error 1 make[1]: Leaving directory/home/phanindra/.rvm/gems/ruby-2.0.0-p247@circle/gems/memcache-1.4.1/ext/libmemcached-0.51'
make: *** [all] Error 2
make install || true 2>&1
make install-am
make[1]: Entering directory /home/phanindra/.rvm/gems/ruby-2.0.0-p247@circle/gems/memcache-1.4.1/ext/libmemcached-0.51' CXXLD libtest/unittest libtest/.libs/libtest.a(libtest_libtest_la-memcached.o): In functionMemcached::get_pid(bool)':
/home/phanindra/.rvm/gems/ruby-2.0.0-p247@circle/gems/memcache-1.4.1/ext/libmemcached-0.51/libtest/memcached.cc:95: undefined reference to libmemcached_util_getpid' /home/phanindra/.rvm/gems/ruby-2.0.0-p247@circle/gems/memcache-1.4.1/ext/libmemcached-0.51/libtest/memcached.cc:100: undefined reference tomemcached_strerror'
/home/phanindra/.rvm/gems/ruby-2.0.0-p247@circle/gems/memcache-1.4.1/ext/libmemcached-0.51/libtest/memcached.cc:91: undefined reference to libmemcached_util_getpid' libtest/.libs/libtest.a(libtest_libtest_la-memcached.o): In functionMemcached::ping()':
/home/phanindra/.rvm/gems/ruby-2.0.0-p247@circle/gems/memcache-1.4.1/ext/libmemcached-0.51/libtest/memcached.cc:128: undefined reference to libmemcached_util_ping' /home/phanindra/.rvm/gems/ruby-2.0.0-p247@circle/gems/memcache-1.4.1/ext/libmemcached-0.51/libtest/memcached.cc:133: undefined reference tomemcached_strerror'
/home/phanindra/.rvm/gems/ruby-2.0.0-p247@circle/gems/memcache-1.4.1/ext/libmemcached-0.51/libtest/memcached.cc:124: undefined reference to libmemcached_util_ping' collect2: error: ld returned 1 exit status make[1]: *** [libtest/unittest] Error 1 make[1]: Leaving directory/home/phanindra/.rvm/gems/ruby-2.0.0-p247@circle/gems/memcache-1.4.1/ext/libmemcached-0.51'
make: *** [install] Error 2
*** extconf.rb failed ***
Could not create Makefile due to some reason, probably lack of necessary
libraries and/or headers. Check the mkmf.log file for more details. You may
need configuration options.

Provided configuration options:
--with-opt-dir
--without-opt-dir
--with-opt-include
--without-opt-include=${opt-dir}/include
--with-opt-lib
--without-opt-lib=${opt-dir}/lib
--with-make-prog
--without-make-prog
--srcdir=.
--curdir
--ruby=/home/phanindra/.rvm/rubies/ruby-2.0.0-p247/bin/ruby
extconf.rb:53:in chdir': No such file or directory - /home/phanindra/.rvm/gems/ruby-2.0.0-p247@circle/gems/memcache-1.4.1/ext/lib (Errno::ENOENT) from extconf.rb:53:in

'

Gem files will remain installed in /home/phanindra/.rvm/gems/ruby-2.0.0-p247@circle/gems/memcache-1.4.1 for inspection.
Results logged to /home/phanindra/.rvm/gems/ruby-2.0.0-p247@circle/gems/memcache-1.4.1/ext/gem_make.out
`