India-Japan Fund To Invest INR 400 Crore In Mahindra Last Mile Mobility

India-Japan Fund is set to invest INR 400 crore in Mahindra Last Mile Mobility Ltd, a unit of automobile major Mahindra & Mahindra. The investment, made at a valuation of up to INR 6,600 crore, will give India-Japan Fund (IJF) ownership ranging from 6.06 per cent to 8.25 per cent in Mahindra Last Mile Mobility Ltd.

The Mumbai-based automaker and India-Japan Fund, managed by National Investment and Infrastructure Fund Ltd (NIIF), have signed a binding agreement for this investment. Mahindra Last Mile Mobility Ltd includes Mahindra's last-mile mobility business, including three-wheelers (Alfa, Treo, Zor) and four-wheeler SCV (Jeeto) brands.

The investment comes from India-Japan Fund (IJF), a INR 4,900 crore fund (approximately USD 600 million) with Japan Bank of International Cooperation (JBIC) and the Government of India as anchor investors. IJF focuses on investing in environmental sustainability and low carbon emission strategies, while also promoting investments by Japanese companies in India, fostering collaboration between Indian and Japanese companies.

Developing Sustainability Mobility Solutions

This investment marks IJF's first infusion since its establishment in August 2023, and it will join the International Finance Corporation (IFC) as an investor in Mahindra Last Mile Mobility Ltd. Mahindra Group's Group CEO and Managing Director, Anish Shah, highlighted the attractiveness of their business model, citing previous investments from marquee investors like IFC.

“We are committed to developing sustainable mobility solutions that help in accelerating the decarbonization 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,” Anish said.

Strengthening India-Japan Partnership

Krishna Kumar G, Partner, India Japan Fund, NIIF, said that 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,” Kumar said.

Mahindra Last Mile Mobility Ltd, established as a subsidiary of Mahindra & Mahindra, began its commercial operations in September 2023. Rajesh Jejurikar, Executive Director and CEO, Auto & Farm Sectors, Mahindra & Mahindra, said, “We welcome IJF in this journey as we work towards growing the market at scale through technology and sustainable solutions.”