Mahindra & Mahindra Ltd. (M&M), a distinguished player in the automotive, farm, and services sectors, has entered into a binding agreement with the India-Japan Fund (IJF), managed by the National Investment and Infrastructure Fund Limited (NIIF), for a substantial investment of INR 400 Crore in Mahindra Last Mile Mobility Limited (MLMML). This business unit encompasses M&M’s last-mile mobility offerings, including three-wheelers (Alfa, Treo, Zor) and the four-wheeler SCV (Jeeto) brands.
The India-Japan Fund, valued at INR 4900 Crore (USD 600 Million), with anchor investments from the Japan Bank of International Cooperation (JBIC) and the Government of India, focuses on investments in environmental sustainability and low carbon emission strategies. Additionally, it promotes collaboration between Japanese and Indian companies. This investment marks IJF’s inaugural venture since its establishment in August 2023.
Under the agreement, IJF will inject INR 400 Crore at a valuation of up to INR 6600 Crore, resulting in IJF holding an ownership stake ranging between 6.06% and 8.25% in MLMML. IJF joins the International Finance Corporation (IFC) as an investor in MLMML, leveraging the expertise of these prominent investors to drive continued growth.
MLMML, established as a subsidiary of Mahindra & Mahindra Ltd., initiated commercial operations in September 2023, following the closure of Asset Transfer and Business Transfer Agreements with M&M.
Dr. Anish Shah, Group CEO & MD, Mahindra Group, expressed delight in welcoming NIIF as a partner in the last-mile mobility journey through IJF. He emphasized Mahindra Group’s commitment to developing sustainable mobility solutions aligned with their mission to be ‘Planet Positive’ by 2040.
Krishna Kumar G, Partner at India Japan Fund, NIIF, stated, “The fund’s investment in MLMML not only underlines our dedication to promoting sustainable and innovative mobility solutions but also strengthens the partnership between India and Japan in high-growth sectors.”
Rajesh Jejurikar, Executive Director and CEO, Auto & Farm Sectors, Mahindra & Mahindra, highlighted MLMML’s role in revolutionizing electric three-wheeler growth in India, providing sustainable last-mile connectivity, and fostering employment generation. He welcomed IJF on this journey, emphasizing efforts towards market growth through technology and sustainable solutions.
