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International Finance Corporation (IFC) has announced an investment of ₹600 crore in a new Last Mile Mobility (LMM) company, a wholly owned subsidiary of Mahindra & Mahindra, to be newly incorporated (Newco).
A gamechanger for micro-entrepreneurs in India, the funding aims to transform the lives of micro-entrepreneurs operating electric three-wheelers and small commercial vehicles by increasing their income and helping the auto industry shift from fossil fuels to electric vehicles (EVs). Paving the way. ,
“IFC’s first investment in an EV manufacturer in the country and first investment in electric three-wheelers globally will be in the form of mandatory convertible devices at a valuation of up to ₹6,020 crore.” IFC and M&M said in a joint statement.
The ₹600 crore investment will result in an ownership of between 9.97% and 13.64% for IFC in Newco.
NewCo will have a Last Mile Mobility division comprising three wheelers (Alfa, Treo, Zor) and four wheeler SCVs (Jeto).
“IFC’s funding will help drive the growth of electric mobility in last-mile connectivity – passenger and cargo segments – while enabling the development and manufacturing of new generation products in this space,” the joint statement said.
Anish Shah, MD & CEO, M&M, said, “Decarbonizing the transport sector is critical for India to achieve the climate goals it has set for itself. IFC, with its focus on promoting sustainability and prosperity, is an ideal partner for us.
Hector Gomez Ang, IFC Regional Director for South Asia, said, “India is the largest market for three-wheelers globally, and this investment is aimed at domestic production of electric vehicles that cater to this segment as well as small commercial vehicles. An important step in.”
He added, “By supporting a key market player, IFC hopes to encourage other large automotive manufacturers to follow suit, drive EV adoption across India and help the government meet its climate goals. ”
Rajesh Jejurikar, Executive Director and CEO (Auto and Farm Sectors), M&M, said, “The last mile mobility business presents tremendous opportunities both in terms of electrification and growth. Being the market leader in this segment, we have There is an opportunity to drive higher EV penetration in the U.S. and provide a more sustainable and profitable option to micro-entrepreneurs.