Mahindra Last Mile Mobility Secures Rs 400 Crore Funding from NIIF's India-Japan Fund, Valuation Hits Rs 6,600 Crore Mark

The India Japan Fund counts the Japan Bank of International Cooperation (JBIC) and the Government of India as anchor investors.

The India Japan Fund (IJF) has signed a binding agreement with Mahindra & Mahindra under which the fund will invest Rs 400 crore in Mahindra Last Mile Mobility at a valuation of up to Rs 6,600 crore, resulting in the fund owning 6.06% to 8.25% of MLMML.

The India-Japan Fund is a Rs 4,900 crore fund administered by the National Investment and Infrastructure Fund Limited, with anchor investors Japan Bank of International Cooperation ("JBIC") and the Government of India.

The fund focuses on environmental sustainability and low-carbon emission initiatives, as well as boosting Japanese company investments in India, including partnerships between Indian and Japanese enterprises.

Launched in August 2023, the fund focuses on supporting environmental sustainability and low-carbon emission initiatives while facilitating investments by Japanese companies in India and promoting collaboration between Indian and Japanese entities.

Mahindra Last Mile Mobility Limited, a subsidiary of Mahindra & Mahindra Ltd., oversees the last-mile mobility business, including popular three-wheeler models like Alfa, Treo, and Zor, as well as the four-wheeler SCV (Jeeto) brand. The investment from IJF marks the fund's maiden investment since its establishment.

"We are delighted to have NIIF as a partner in our last-mile mobility journey through IJF. The strength of our business model has previously attracted prominent financiers such as IFC and now IJF, which will help us move closer to our aim of becoming 'Planet Positive' by 2040," stated Dr Anish Shah, Group CEO & MD, Mahindra Group.

Krishna Kumar G, Partner at India Japan Fund, NIIF, expressed confidence that their investment in Mahindra Last Mile Mobility (MLMML), along with JBIC as partners, will bring positive changes to last-mile transportation. This includes boosting economic growth, creating job opportunities, and contributing to environmental sustainability.

Rajesh Jejurikar, Executive Director and CEO of Auto & Farm Sectors at Mahindra & Mahindra, emphasized the importance of large-scale electrification in the last-mile mobility segment. He stated, “We welcome IJF in this journey as we work towards growing the market at scale through technology and sustainable solutions.”

The investment from IJF was added to the list of notable investors in MLMML, which already includes the International Finance Corporation (IFC). The collaboration between India Japan Fund and Mahindra Last Mile Mobility reflects a commitment to advancing sustainable and innovative solutions in the rapidly evolving mobility landscape.