Mumbai, January 11, 2024: Mahindra & Mahindra Ltd. (“M&M”), a leader in automotive, farm and services businesses, and India-Japan Fund (“IJF”), a fund managed by National Investment and Infrastructure Fund Limited (“NIIF”) have executed a binding agreement for IJF to invest INR 400 Crore in Mahindra Last Mile Mobility Limited (“MLMML”), which houses M&M’s last-mile mobility business including three wheelers (Alfa, Treo, Zor) and four-wheeler SCV (Jeeto) brands.

IJF is a INR 4900 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 investment after the fund was set up in August 2023.

IJF will invest INR 400 Crore at a valuation of up to INR 6600 Crore, resulting in IJF’s ownership ranging between 6.06% and 8.25% stake in MLMML.

IJF will join International Finance Corporation (“IFC”) as an investor in MLMML.The wealth of expertise of these marquee investors will be leveraged to drive the continued growth of MLMML.

MLMML was incorporated as a subsidiary of Mahindra & Mahindra Ltd. and commenced commercial operations in September 2023, pursuant to closing of Asset Transfer and Business Transfer Agreements with M&M.

Dr. 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 decarbonisation of the transport sector. 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.”

"We are excited to announce NIIF’s partnership with Mahindra Group by way of IJF’s investment in Mahindra’s last mile mobility business, reflecting the fund’s commitment to invest in low carbon emission strategy opportunities. The fund’s investment in MLMML not only underlines our dedication to promoting sustainable and innovative mobility solutions, but also strengthens partnership between India and Japan in high-growth sectors. Together with our partners JBIC, we believe that our investment in MLMML should yield transformative results in the last-mile mobility domain, driving economic growth, generating employment and ensuring environmental sustainability,” said, Krishna Kumar G, Partner, India Japan Fund, NIIF.

Rajesh Jejurikar, Executive Director and CEO, Auto & Farm Sectors, Mahindra & Mahindra, commented, “MLMML is a pioneer in revolutionising the electric three-wheeler growth in India, enabling customer prosperity including employment generation and providing sustainable last mile connectivity. It is a market leader in this segment, and was awarded the first automotive Production Linked Incentive (“PLI”) certificate. The large-scale electricifcation of the last mile mobility segment holds tremendous promise as it offers profitable solutions to micro-entrepreneurs 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.”

About Mahindra

Founded in 1945, the Mahindra Group is one of the largest and most admired multinational federation of companies with 260000 employees in over 100 countries. It enjoys a leadership position in farm equipment, utility vehicles, information technology and financial services in India and is the world’s largest tractor company by volume. It has a strong presence in renewable energy, agriculture, logistics, hospitality, and real estate. The Mahindra Group has a clear focus on leading ESG globally, enabling rural prosperity and enhancing urban living, with a goal to drive positive change in the lives of communities and stakeholders to enable them to Rise.

Learn more about Mahindra on www.mahindra.com / Twitter and Facebook: @MahindraRise/ For updates subscribe to https://www.mahindra.com/news-room

About National Investment and Infrastructure Fund Limited (NIIF)

NIIF is a collaborative investment platform for international and Indian investors, anchored by the Government of India, which manages funds with investments in different asset classes and diversified sectors that generate attractive risk-adjusted returns. NIIF manages over USD 4.9 Billion of equity capital commitments across its four funds – Master Fund, Private Markets Fund, Strategic Opportunities Fund, and India-Japan Fund, each with a distinct investment strategy committed to support the country’s growth needs.

IJF is NIIF’s first bilateral fund with a corpus of INR 4900 Crore, with the Government of India (“GoI”) contributing 49% and the remaining 51% contributed by the Japan Bank for International Cooperation (“JBIC”), a policy based financial institution wholly owned by the Government of Japan. IJF focuses on investing in India’s environmental preservation sector, including renewable energy, e-mobility businesses, and circular economy sectors such as waste management, and water. Moreover, IJF also aims to promote investments by Japanese companies in India, including collaboration between Indian and Japanese companies across sectors.