India-Japan Fund (IJF), managed by National Investment and Infrastructure Fund Ltd (“NIIF”), will invest ₹400 crore in Mahindra Last Mile Mobility Ltd (MLMML).

MLMML houses the company’s three-wheelers (Alfa, Treo and Zor) and four-wheeler SCV (Jeeto) brands.

IJF will join the International Finance Corporation (IFC) in investing in MLMML and will invest ₹400 crore in one or more tranches, valuing MLMML at up to ₹6,600 crore. 

“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,” said, Krishna Kumar G, Partner of India Japan Fund, NIIF.

The investment will result in a 6.06-8.25 per cent ownership stake of IJF in MLMML. 

Four funds

“NIIF manages over $4.9 billion of equity capital commitments across its four funds – Master Fund, Fund of Funds, Strategic Opportunities Fund, and India-Japan Fund (“IJF”), each with a distinct investment strategy committed to supporting the country’s growth needs. IJF is NIIF’s first bilateral fund with a corpus of about ₹4,900 crore, with the Government of India (“GoI”) contributing 49.034 cent and the remaining 51 per cent contributed by the Japan Bank for International Cooperation (“JBIC”), a policy-based financial institution wholly owned by the Government of Japan,” the company said in an exchange filing.

Earlier, IFC had announced an investment of ₹600 crore in MLMML resulting in an ownership between 9.97 per cent and 13.64 per cent in the company.

“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,” said Anish Shah, Group CEO & MD of the Mahindra Group. 

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