Mahindra & Mahindra, an Indian automaker has been in discussions with global investors to raise funds of $250 million and $500 million to help accelerate its plans to create electric vehicles, according to a source.
The person stated that Mahindra is in talks with private equity firms and global green funds about Mahindra’s future plans. He also said that Mahindra wants to find a long-term investor to help it grow its EV business.
Two sources in the banking industry said that some investors have expressed interest in participating in a round of funding worth approximately $800 million in recent months. They also indicated that they had spoken with the company about these offers.
Mahindra isn’t actively seeking to raise more than $250 and $500 million, but it is open to the possibility of increasing the deal size depending upon the terms and valuation.
“Mahindra would like to have a benchmark investor join it, but it doesn’t want to dilute an existing large stake,” he stated. He also said that the plans were in an early stage and are subject to change.
After raising $250 million from British International Investment (BII), Mahindra’s new EV unit was valued at $9.1 billion in July.
It wasn’t immediately clear what valuation investors were offering or what the company was seeking for the new round. The first electric SUV from the carmaker is expected to go on sale in January.
Mahindra has teamed up with Volkswagen, a German company to purchase components such as electric drivetrains or batteries for its electric SUVs. The two companies are also exploring joint vehicle projects, local battery cell building, and charging solutions.
