NIIF’s India-Japan Fund To Invest Rs 400 Crore In Mahindra Last Mile Mobility

Mahindra & Mahindra has announced a partnership with the India-Japan Fund (IJF), a fund managed by National Investment and Infrastructure Fund Limited (NIIF) to invest Rs 400 crore in Mahindra Last Mile Mobility Limited (MLMML). The investment has been made at a valuation of Rs 6,660 crore, resulting in IJF’s stake in MLMML between 6.06 per cent and 8.25 per cent. 

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IJF will be joining the International Finance Corporation (IFC) as an investor in Mahindra Last-Mile Mobility. The automaker aims to leverage the “wealth of expertise” of its marquee investors for growth. Mahindra Last-Mile Mobility was incorporated as a Mahindra & Mahindra subsidiary in September last year. The business comprises three-wheelers - Alfa, Treo, Zor, and four-wheelers - Jeeto - under its belt, and aims to offer passenger and cargo solutions. 

Krishna Kumar G, Partner, India Japan Fund, NIIF, added, "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 underlines our dedication to promoting sustainable and innovative mobility solutions and strengthens the 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.”

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 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.”

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IJF is a Rs. 4,900 crore fund with the Japan Bank of International Corporation and the Government of India as anchor investors. The fund focuses on investing in environmental sustainability and low-carbon emission strategies, along with promoting investments by Japanese companies in India. The fund was set up in August 2023 and this will be IJF’s first in Mahindra Last-Mile Mobility.