NIIF's IJF Invests INR 400 Crore In Mahindra Last Mile Mobility

Mahindra & Mahindra and India-Japan Fund (“IJF”), a fund managed by National Investment and Infrastructure Fund ("NIIF"), have executed a binding agreement for IJF to invest Rs. 400 crore in Mahindra Last Mile Mobility Limited (“MLMML”), which houses M&M’s last-mile mobility business, including three-wheelers (Alfa, Treo, Zor) and four-wheeler SCV (Jeeto) brands.

IJF is a Rs. 4900 crore (USD 600 million) fund, with the Japan Bank of International Cooperation (“JBIC”) and the Government of India as anchor investors. The fund focuses on investing in environmental sustainability and low-carbon emission strategies while also promoting investments by Japanese companies in India, including collaboration between Indian and Japanese companies. The investment in MLMML will be IJF's first investment after the fund was set up in August 2023.

IJF will invest Rs. 400 crore at a valuation of up to Rs. 6600 crore, resulting in IJF’s ownership ranging between 6.06 per cent and 8.25 per cent of MLMML.

IJF will join the International Finance Corporation (“IFC”) as an investor in MLMML. The wealth of expertise of these marquee investors will be leveraged to drive the continued growth of MLMML.

Anish Shah, Group CEO and MD, of Mahindra Group, said, “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 accelerate the decarbonisation 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.”

MLMML was incorporated as a subsidiary of Mahindra & Mahindra and commenced commercial operations in September 2023, under the closing of asset transfer and business transfer agreements with M&M.

"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. 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,” said Krishna Kumar G, Partner, India Japan Fund, NIIF.