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NIIF’s India-Japan fund to invest Rs 400 cr in Mahindra Last Mile Mobility
Industry News- Jan 11,24
Fund focuses on investing in environmental sustainability and low carbon emission strategies, while also promoting investments by Japanese companies into India.
Mahindra & Mahindra Ltd (M&M), a leader in automotive, farm and services businesses, 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 Rs 400 crore in Mahindra Last Mile Mobility (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 ($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.
IJF will invest Rs 400 crore at a valuation of up to Rs 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. The wealth of expertise of these marquee investors will be leveraged to drive the continued growth of 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, “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.
Rajesh Jejurikar, Executive Director and CEO, Auto & Farm Sectors, Mahindra & Mahindra, commented, “MLMML is a pioneer in revolutionizing the electric three-wheeler growth in India, enabling customer prosperity including employment generation and providing sustainable last mile connectivity. It is a market leader in this segment, and was awarded the first automotive Production Linked Incentive (PLI) certificate. The large-scale electricifcation 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.”
Mahindra & Mahindra
India-Japan Fund
National Investment and Infrastructure Fund
Mahindra Last Mile Mobility
Japan Bank of International Cooperation
International Finance Corporation
Dr Anish Shah
Planet Positive
Krishna Kumar G
Rajesh Jejurikar
Alfa
Treo
Zor
Jeeto
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