IFC to invest Rs 600 cr in Mahindra's New Last Mile Mobility Company

Mahindra & Mahindra announced that in a bid to scale up electric three-wheelers and small commercial vehicles (SCVs) that are more affordable, IFC is investing Rs 600 crore in a new last mile mobility (LMM) company - a wholly owned subsidiary of Mahindra & Mahindra that will be newly incorporated (NewCo). A gamechanger for microentrepreneurs in India, the funding will transform lives by boosting their income and paving the way for the auto industry's seamless shift from fossil fuel to electric vehicles (EVs).

IFC's first investment in an EV manufacturer in the country and the first in electric three-wheelers globally will be in the form of compulsory convertible instruments at a valuation of up to Rs 6,020 crore. The INR 600 crore investment will result in an ownership of between 9.97% to 13.64% for IFC in NewCo.

NewCo will house the last mile mobility division, including three wheelers (Alfa, Treo, Zor) and four-wheeler SCV (Jeeto). IFC's financing will help scale up electric mobility in last mile connectivity - passenger and cargo segments - while enabling the development and manufacturing of new generation products in this space. Electric vehicles enable vibration and noise free operations, generate higher earnings for drivers and enable microe ntrepreneurship. The business will further generate employment for women, driving equality and inclusion while bolstering India's climate action agenda.

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