IJF Commits ₹400 Crore Investment in Mahindra Last Mile Mobility Ltd

The India-Japan Fund (IJF), managed by the National Investment and Infrastructure Fund Ltd (NIIF), is set to make a significant investment of ₹400 crore in Mahindra Last Mile Mobility Ltd (MLMML), housing Mahindra Group's renowned three-wheelers (Alfa, Treo, and Zor) and the four-wheeler SCV (Jeeto) brands.

IJF will be partnering with the International Finance Corporation (IFC) in this venture and plans to invest ₹400 crore in one or more tranches, thereby valuing MLMML at a substantial ₹6,600 crore. Krishna Kumar G, Partner of India Japan Fund at NIIF, emphasized the significance of this investment, stating, "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."

As a result of this investment, IJF is expected to secure an ownership stake ranging between 6.06% and 8.25% in MLMML. NIIF, which manages over $4.9 billion in equity capital commitments across various funds, highlighted that IJF is its first bilateral fund, with a corpus of approximately ₹4,900 crore. The fund's structure involves the Government of India contributing 49.034%, and the Japan Bank for International Cooperation (JBIC), a policy-based financial institution wholly owned by the Government of Japan, contributing the remaining 51%.

Earlier, IFC had disclosed its intention to invest ₹600 crore in MLMML, resulting in an ownership stake ranging between 9.97% and 13.64%. Anish Shah, Group CEO & MD of the Mahindra Group, expressed enthusiasm about NIIF's partnership, stating, "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."

HBL