 "Anand Mahindra, mahindra group")
Mahindra & Mahindra Ltd on Thursday announced that the India-Japan Fund, a fund managed by the National Investment and Infrastructure Fund (NIIF), will invest Rs 400 crore in Mahindra Last Mile Mobility Limited (MLMML), the group's last-mile mobility business.
IJF is a Rs 4900 crore ($600 million) fund, with Japan Bank of International Cooperation and the government of India as anchor investors. The fund focuses on investing in environmental sustainability and low carbon emission strategies while also promoting investments by Japanese companies into India, including collaboration between Indian and Japanese companies.
The investment in MLMML will be IJF's first investment after the fund was set up in August 2023.
IJF will invest Rs 400 crore at a valuation of up to Rs 6,600 crore, resulting in ownership ranging between 6.06 per cent and 8.25 per cent stake in MLMML. MLMML was incorporated as a subsidiary of Mahindra & Mahindra Ltd. and commenced commercial operations in September 2023
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Earlier, the International Finance Corporation (IFC) had invested in MLMML.
"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," said Anish Shah, group chief executive officer and managing director at Mahindra Group.
"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," added Krishna Kumar G, partner, India Japan Fund, NIIF.
"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," said Rajesh Jejurikar, executive director and CEO, Auto & Farm Sectors, Mahindra & Mahindra.
