Mahindra Gears Up for Growth: India-Japan Fund Injects ₹400 Crore Boost

The India-Japan Fund (IJF), overseen by the National Investment and Infrastructure Fund (NIIF), is set to invest Rs 400 crore in Mahindra Last Mile Mobility (MLMML). MLMML is responsible for housing Mahindra's three-wheelers, including Alfa, Treo, and Zor, as well as the four-wheeler SCV (Jeeto) brands.

In collaboration with the International Finance Corporation (IFC), IJF will make this investment in MLMML in one or more installments, valuing MLMML at up to Rs 6,600 crore. This strategic investment will result in IJF acquiring a 6.06-8.25 percent ownership stake in MLMML.

The infusion of funds from IJF will play a pivotal role in promoting sustainable mobility solutions, fostering stronger ties between India and Japan in high-growth sectors. For the Mahindra Group, this partnership signifies a significant step towards expediting the decarbonization of the transport sector.

IJF, with a total corpus of approximately Rs 4,900 crore, stands as NIIF's inaugural bilateral fund. The Government of India (GoI) contributes 49.034 percent, while the remaining 51 percent comes from the Japan Bank for International Cooperation (JBIC). NIIF effectively manages capital commitments across its four funds: the Master Fund, Fund of Funds, Strategic Opportunities Fund, and IJF, each with a distinct investment strategy designed to support the country's diverse growth needs.

News by Rahul Yelligetti