Mumbai, January 11, 2024: Mahindra & Mahindra Ltd. (“M&M”), a prominent player in the automotive, farm, and services sectors, has sealed a significant deal with the India-Japan Fund (“IJF”), managed by the National Investment and Infrastructure Fund Limited (“NIIF”). The agreement entails IJF investing INR 400 Crore in Mahindra Last Mile Mobility Limited (“MLMML”), a subsidiary of M&M, specializing in last-mile mobility solutions.
About the Investment
IJF, a fund valued at INR 4900 Crore (USD 600 Million), boasts the Japan Bank of International Cooperation (“JBIC”) and the Government of India as anchor investors. The fund focuses on environmentally sustainable and low carbon emission strategies, promoting collaboration between Indian and Japanese companies. This marks IJF’s inaugural investment since its establishment in August 2023.
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Valuation and Stake
The investment in MLMML amounts to INR 400 Crore at a valuation of up to INR 6600 Crore. Consequently, IJF will secure an ownership stake ranging between 6.06% and 8.25% in MLMML.
Strategic Collaboration
IJF will collaborate with the International Finance Corporation (“IFC”) as an investor in MLMML. The combined expertise of IJF and IFC is expected to drive the continued growth of MLMML.
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Last Mile Mobility Business
MLMML, initiated as a subsidiary of Mahindra & Mahindra Ltd., started its commercial operations in September 2023. The business encompasses last-mile mobility solutions, including three-wheelers (Alfa, Treo, Zor) and four-wheeler SCV (Jeeto) brands.
Leadership Perspectives
Dr. Anish Shah, Group CEO & MD, Mahindra Group, expressed delight about NIIF’s partnership, stating, “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, highlighted the commitment to low carbon emission strategies, saying, “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, emphasized MLMML’s role as a pioneer in revolutionizing the electric three-wheeler growth in India. He welcomed IJF in their journey towards growing the market at scale through technology and sustainable solutions.
In conclusion, this strategic investment by IJF in Mahindra‘s last-mile mobility business represents a significant step towards sustainable and innovative mobility solutions, fostering collaboration between India and Japan in high-growth sectors.
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