NIIF's India-Japan Fund invests INR 400 Cr. in Mahindra's last mile mobility business
Mahindra Last Mile Mobility Limited (MLMML), a subsidiary of automotive major Mahindra & Mahindra, has attracted investment of INR 400 crore from the India-Japan Fund (IJF), a fund managed by the National Investment and Infrastructure Fund (NIIF).
Mahindra & Mahindra signed a binding agreement with IJF to invest INR 400 crore in its last mile mobility business which includes its three-wheeler (Alfa, Treo, Zor) and four-wheeler SCV (Jeeto) brands on Thursday (Jan 11). The latest investment in MLMML marks IJF's first investment after the fund was set up in August 2023.
The IJF fund is an INR 4,900 crore (US $600 million) fund, with 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 promoting investments by Japanese companies into India, including collaboration between Indian and Japanese companies.
"The large-scale electrification 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. We welcome IJF in this journey as we work towards growing the market at scale through technology and sustainable solutions," said Rajesh Jejurikar, Executive Director and CEO, Auto and Farm sector at Mahindra & Mahindra.
The IJF INR 400 crore investment at a valuation of up to INR 6600 crore, will result in IJF's stake ranging between 6.06% and 8.25% in MLMML.
"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, IJF, NIIF.