NIIF’s India-Japan Fund to Invest 400 Crore in Mahindra Last Mile Mobility Limited
Posted on 01/11/2024
Mahindra & Mahindra Ltd. (M&M) is an automotive, farm and services businesses. Mahindra & Mahindra and India-Japan Fund (IJF), a fund managed by National Investment and Infrastructure Fund Limited (NIIF) have executed a binding agreement for IJF to invest INR 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 INR 4900 Crore (US$ 600 Million) fund, with Japan Bank of International Cooperation (JBIC) and 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. The investment in MLMML will be IJF’s first investment after the fund was set up in August 2023. The bilateral investment fund is keen on getting exposure to the electric three-wheeler growth market in India.
IJF will invest INR 400 Crore at a valuation of up to INR 6600 Crore, resulting in IJF’s ownership ranging between 6.06% and 8.25% stake in MLMML.
IJF will join International Finance Corporation (IFC) as an investor in MLMML.
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 in a press release, “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 in accelerating 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.”
“We are excited to announce NIIF’s partnership with Mahindra Group by way of IJF’s investment in Mahindra’s last mile mobility business, reflecting the fund’s commitment to invest in low carbon emission strategy opportunities. The fund’s investment in MLMML not only underlines our dedication to promoting sustainable and innovative mobility solutions, but also strengthens 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, in a press release.