Mahindra Gets INR 600 Crore Investment From IFC

Mobility Outlook Bureau
22 Mar 2023
04:21 PM
2 Min Read

The investment will be made in the new last mile mobility company of M&M, and will result in an ownership of between 9.97% to 13.64% for IFC in the newly incorporated company.


In a bid to scale up electric three-wheelers and small commercial vehicles (SCVs), IFC is investing INR 600 crore in a new last mile mobility (LMM) company - a wholly owned subsidiary of Mahindra & Mahindra that will be newly incorporated (“NewCo”).

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 INR 6,020 crore. The INR 600 crore investment will result in an ownership of between 9.97% to 13.64% for IFC in NewCo.

A press release from M&M noted that 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).

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 micro entrepreneurship. The business will further generate employment for women, driving equality and inclusion while bolstering India’s climate action agenda.

Anish Shah, MD & CEO, Mahindra & Mahindra, noted that decarbonising the transport sector is crucial to achieving the climate goals that India has set for herself. IFC, with its focus on sustainability and boosting prosperity, is an ideal partner for the company.

With the electrification of the last mile mobility business at scale, the company will move a step further in its commitment to be ‘Planet Positive’ by 2040,” he said, adding that this also presents a tremendous opportunity for growth for micro and women entrepreneurs.

Hector Gomez Ang, Regional Director for South Asia, IFC, said India is the largest three-wheeler market globally, and this investment marks a significant step towards scaled domestic production of electric vehicles catering to this segment, as well as small commercial vehicles. 

Rajesh Jejurikar, Executive Director and CEO (Auto & Farm Sector), Mahindra & Mahindra, said, 'The last mile mobility business presents a tremendous opportunity, both in terms of electrification and growth.”

Being the market leaders in this segment, the company has an opportunity to drive higher EV penetration in this segment and provide a more sustainable as well as profitable option to microentrepreneurs, he added.

“Through this partnership with Mahindra & Mahindra, we aim to leverage private sector innovation and technology to accelerate the transition to EVs and help strengthen India’s e-mobility ecosystem,” said Carsten Mueller, Regional Industry Director for Manufacturing, Agribusiness and Services, Asia, IFC.

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