Mahindra's Mobility Arm Gets Rs 400 Crore Boost from India-Japan Fund

11 Jan 2024 , 02:28 PM

Mahindra & Mahindra Ltd announces a Rs 400 crore investment by the India-Japan Fund (IJF) managed by the National Investment and Infrastructure Fund (NIIF) in Mahindra Last Mile Mobility Limited (MLMML), the group's last-mile mobility business.

IJF, a Rs 4900 crore ($600 million) fund, with anchor investors such as Japan Bank of International Cooperation and the government of India, focuses on environmental sustainability and low carbon emission strategies. It promotes investments by Japanese companies in India, fostering collaboration between Indian and Japanese firms.

This investment marks IJF's first venture since its establishment in August 2023, valuing MLMML up to Rs 6,600 crore. The investment results in IJF holding a stake ranging between 6.06% and 8.25% in MLMML.

MLMML, incorporated as a Mahindra & Mahindra Ltd subsidiary, commenced commercial operations in September 2023. Earlier, the International Finance Corporation (IFC) had also invested in MLMML.

Anish Shah, the Group CEO and Managing Director at Mahindra Group, expresses confidence in attracting marquee investors, highlighting the business model's robustness towards achieving a 'Planet Positive' mission by 2040.

Krishna Kumar G, Partner at India Japan Fund, NIIF, believes the investment with Mahindra will yield transformative results in the last-mile mobility domain, contributing to economic growth, employment, and environmental sustainability.

Rajesh Jejurikar, Executive Director and CEO of Auto & Farm Sectors at Mahindra & Mahindra, emphasizes the potential of large-scale electrification in the last-mile mobility segment, welcoming IJF as a partner in advancing technology and sustainable solutions for market growth.

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