IJF’s inaugural investment following the establishment of its fund in August 2023 will be in MLMML.
The India Japan Fund (IJF) has finalized a definitive agreement with Mahindra & Mahindra for an investment of Rs 400 crore in Mahindra Last Mile Mobility (MLMML). This deal values MLMML at up to Rs 6,600 crore, giving IJF an ownership stake ranging from 6.06% to 8.25%. MLMML, a subsidiary of Mahindra & Mahindra Ltd., operates within the last-mile mobility sector, encompassing three-wheelers like Alfa, Treo, Zor, and the four-wheeler SCV Jeeto brand.
This transaction marks IJF’s initial investment since its formation in August 2023 and adds the fund to MLMML’s investor list alongside the International Finance Corporation. The India-Japan Fund, a Rs 4,900 crore entity managed by the National Investment and Infrastructure Fund Limited, counts the Japan Bank of International Cooperation (JBIC) and the Government of India as its primary investors. The fund’s strategy centres on environmental sustainability and lowering carbon emissions, fostering investments from Japanese firms in India and encouraging Indo-Japanese corporate collaboration.
MLMML, established as a Mahindra & Mahindra Ltd. subsidiary, began its commercial operations in September 2023, following the completion of Asset Transfer and Business Transfer Agreements with M&M.
Dr Anish Shah, Group CEO & MD of the Mahindra Group, expressed enthusiasm about NIIF’s partnership through IJF in their last-mile mobility endeavour. He highlighted the strength of their business model, which previously attracted high-profile investors like IFC and now IJF, supporting their ‘Planet Positive’ mission by 2040.
Krishna Kumar G, a Partner at India Japan Fund, NIIF, emphasized the transformative potential of their investment in MLMML in the last-mile mobility sector, anticipating significant contributions to economic growth, job creation, and environmental sustainability.
Rajesh Jejurikar, Executive Director and CEO of Auto & Farm Sectors at Mahindra & Mahindra underscored the vast potential of electrifying the last-mile mobility segment. He welcomed IJF’s involvement, focusing on expanding market penetration and adoption through technology and sustainable solutions.