India-Japan Fund Injects Rs 400 Crore into Mahindra Last Mile Mobility
The India-Japan Fund (IJF), managed by the National Investment and Infrastructure Fund Limited (NIIF), is set to invest Rs 400 crore in Mahindra Last Mile Mobility at a valuation of up to Rs 6,600 crore. This investment will result in IJF holding a stake ranging from 6.06% to 8.25% in the electric three-wheeler manufacturer. By doing so, IJF will join the International Finance Corporation (IFC) as an investor in Mahindra Last Mile Mobility, which became a subsidiary of Mahindra & Mahindra and initiated commercial operations in September 2023.
Anish Shah, Group CEO & MD, Mahindra Group, said, “We are delighted to have NIIF as a partner in our last mile mobility journey through IJF. At Mahindra Group, we are committed to developing sustainable mobility solutions that help in accelerating the decarbonization of the transport sector". "The fund’s investment in MLMML not only underlines our dedication to promoting sustainable and innovative mobility solutions but also strengthens the partnership between India and Japan in high-growth sectors", Krishna Kumar G, Partner, India Japan Fund, NIIF, said.
Rajesh Jejurikar, Executive Director and CEO, Auto & Farm Sectors, Mahindra & Mahindra, said, “The large-scale electrification of the last mile mobility segment holds tremendous promise as it offers profitable solutions to microentrepreneurs 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".
NIIF's inaugural bilateral fund, the India-Japan Fund (IJF), boasts a corpus of approximately Rs 4,900 crore, with the Government of India providing 49%, and the Japan Bank for International Cooperation (JBIC) contributing the remaining 51%. Focused on sectors such as renewable energy, e-mobility businesses, and the circular economy, IJF is set to make its inaugural investment in Mahindra Last Mile Mobility. This marks the fund's maiden investment since its establishment in August 2023.
NIIF serves as a collaborative investment platform, bringing together international and Indian investors and is anchored by the Government of India. It oversees funds with investments spanning various asset classes and diverse sectors. Currently, NIIF manages equity capital commitments exceeding USD 4.9 billion across its four funds: Master Fund, Private Markets Fund, Strategic Opportunities Fund, and IJF. In March 2023, the International Finance Corporation (IFC) committed to investing INR 600 crore in Mahindra Last Mile Mobility in tranches, valuing the company at up to Rs 6020 crore. The first tranche of this investment was successfully completed in November of the preceding year.
