India-Japan Fund to invest Rs 400 crore in Mahindra & Mahindra's unit

Mahindra & Mahindra on Thursday said India-Japan Fund will invest Rs 400 crore in its unit Mahindra Last Mile Mobility Ltd.

India-Japan Fund (IJF) will invest Rs 400 crore at a valuation of up to Rs 6,600 crore, resulting in IJF's ownership ranging between 6.06 per cent and 8.25 per cent stake in Mahindra Last Mile Mobility Ltd (MLMML), Mahindra & Mahindra (M&M) said in a statement.

The Mumbai-based automaker and IJF, a fund managed by National Investment and Infrastructure Fund Ltd (NIIF), have executed a binding agreement in this regard, it added. MLMML houses the automaker's last-mile mobility business, including three-wheelers (Alfa, Treo, Zor) and four-wheeler SCV (Jeeto) brands.

"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," Mahindra Group's Group Chief Executive Officer and Managing Director Anish Shah said.

IJF is a Rs 4,900 crore (USD 600 million) fund with Japan Bank of International Cooperation (JBIC) and 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 infusion after the fund was set up in August 2023. IJF will join the International Finance Corporation (IFC) as an investor in MLMML.
MLMML was incorporated as a subsidiary of M&M and commenced commercial operations in September 2023.

"We welcome IJF in this journey as we work towards growing the market at scale through technology and sustainable solutions," M&M Executive Director and CEO (Auto & Farm Sectors) Rajesh Jejurikar said.

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