India-Japan Fund to invest Rs 400 crore in Mahindra Last Mile Mobility business

India-Japan Fund to invest Rs 400 crore in Mahindra Last Mile Mobility business

Mumbai-headquartered automotive company Mahindra & Mahindra has executed a binding agreement with India-Japan Fund (IJF), afund managed by National Investment and Infrastructure Fund (NIIF), which will see IJF invest Rs 400 crore in Mahindra Last Mile Mobility (MLMML).

MLMML houses Mahindra’s last-mile mobility business including three-wheelers – Alfa, Treo, Zor – and four-wheeler SCV – Jeeto brands.

As per the companies, IJF will investRs 400 crore at a valuation of up to Rs 6,600 crore, resulting in IJF’s ownership ranging between 6.06% and 8.25% stake in MLMML.

IJF will join International Finance Corporation (IFC) as an investor in MLMML, which was incorporated as a subsidiary of Mahindra & Mahindra and commenced commercial operations in September 2023, pursuant to closing of Asset Transfer and Business Transfer Agreements with M&M.

Dr. Anish Shah, Group CEO & MD, Mahindra Groupsaid,“We are delighted to have NIIF as a partner in our last mile mobility journey through IJF. At Mahindra Group, we are committed to developing sustainable mobility solutions that help in accelerating the decarbonization of the transport sector. The robustness of our business model has attracted marquee investors such as IFC in the past and now IJF, which will help us move closer to our mission to be ‘Planet Positive’ by 2040.”

Krishna Kumar G, Partner, India Japan Fund, NIIF said, “The fund’s investment in MLMML not only underlines our dedication to promoting sustainable and innovative mobility solutions, but also strengthens partnership between India and Japan in high-growth sectors. Together with our partners JBIC, we believe that our investment in MLMML should yield transformative results in the last-mile mobility domain, driving economic growth, generating employment and ensuring environmental sustainability.”

Rajesh Jejurikar, Executive Director and CEO, Auto & Farm Sectors, Mahindra & Mahindra said,“MLMML is a pioneer in revolutionising the electric three-wheeler growth in India, enabling customer prosperity including employment generation and providing sustainable last mile connectivity. It is a market leader in this segment, and was awarded the first automotive Production Linked Incentive (PLI) certificate. The large-scale electricifcation of the last-mile mobility segment holds tremendous promise as it offers profitable solutions to micro-entrepreneurs and all our efforts are directed towards increasing penetration and adoption.”