NIIF’s India-Japan Fund to invest Rs 400 crore at valuation in Mahindra Last Mile Mobility

India Japan Fund (IJF) has made an agreement with Mahindra & Mahindra which will allow IJF to invest Rs 400 crore in Mahindra Last Mile Mobility, at a valuation of up to Rs 6,600 crore. This will result in the fund's ownership ranging between 6.06% and 8.25% stake in MLMML.

Mahindra Last Mile Mobility Limited houses M&M’s last-mile mobility business including three wheelers (Alfa, Treo, Zor) and four-wheeler SCV (Jeeto) brands. The investment in MLMML will be IJF's first investment after the fund was set up in August 2023, and it joins the International Finance Corporation as an investor in MLMML.

About the Fund

India-Japan Fund is a Rs 4,900 crore fund managed by National Investment and Infrastructure Fund Limited, 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 also promoting investments by Japanese companies into India, including collaboration between Indian and Japanese companies.

MLMML was incorporated as a subsidiary of Mahindra & Mahindra Ltd. and commenced commercial operations in September 2023, pursuant to closing of Asset Transfer and Business Transfer Agreements with M&M.

Dr. Anish Shah, Group CEO & MD, Mahindra Group, said, “We are delighted to have NIIF as a partner in our last mile mobility journey through IJF. The robustness of our business model has attracted marque 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.”

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"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.

Rajesh Jejurikar, Executive Director and CEO, Auto & Farm Sectors, Mahindra & Mahindra, commented, “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.”

Benefits of Mahindra Last Mile Mobility on the Indian market

The unveiling of NIIF's India-Japan Fund has brought about great anticipation and excitement, particularly for Mahindra Last Mile Mobility. With a staggering valuation of Rs 6,600 crore, this funding initiative is expected to be a true game-changer for both the company and the Indian economy as a whole.

For Mahindra Last Mile Mobility, this investment from the NIIF's India-Japan Fund opens up a world of opportunities. As a leading player in the last-mile mobility sector, Mahindra Last Mile Mobility has been striving to enhance its operations and expand its reach across the country. This substantial infusion of funds will provide the company with the necessary resources to accelerate its growth plans, develop innovative solutions, and scale up its operations.

One of the key benefits for Mahindra Last Mile Mobility is the access to strategic expertise and networks that the NIIF's India-Japan Fund brings. This collaborative effort between India and Japan not only provides financial support but also serves as a platform for knowledge sharing and technology transfer. By leveraging the experience and expertise of both nations, Mahindra Last Mile Mobility can tap into new markets, explore innovative business models, and strengthen its competitive edge.