IFC to Invest Rs 600 Crore in M&M’s New Last-Mile EV Company

IFC will invest Rs 600 crore in NewCo, Mahindra Group said.

Global development agency International Finance Corporation (IFC) announced on Wednesday that it would invest Rs 600 crore in a new last mile mobility (LMM) company, a wholly-owned subsidiary of Mahindra & Mahindra, to be newly formed (NewCo).

IFC’s first investment in an electric vehicle maker in the country, and the world’s first in an electric three-wheeler, will be in the form of a mandatory convertible vehicle valued at up to Rs 6,020 crore. The Rs 600 crore investment will give IFC an ownership stake of 9.97% and 13.64% in the new company.

NewCo will house the last mile mobility sector, including three-wheelers (Alfa, Treo, Zor) and four-wheeler SCVs (Jeeto).

“With the mass electrification of last-mile mobility operations, we will further our commitment to a positive planet by 2040. This also presents a huge growth opportunity for micro and women entrepreneurs,” said Anish Shah, MD and CEO of Mahindra & Mahindra said.

India has pledged to reduce its emissions by 45% by 2030 while aiming to achieve 80% penetration of two- and three-wheeled electric vehicles, 70% for commercial vehicles and 30% for private vehicles simultaneously.

Rajesh Jejurikar, Executive Director and CEO (Automotive and Agriculture Sector), Mahindra & Mahindra, a market leader in the sector, said: “We have an opportunity to increase the penetration of electric vehicles in the sector and provide a more sustainable and profitable choice of microentrepreneurs”.

IFC is a member of the World Bank Group and operates in more than 100 countries. In FY22, IFC committed a record $32.8 billion to develop countries’ private companies and financial institutions.

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