IFC to Invest in New Last Mile Mobility Company to Be Launched by Mahindra

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“The last mile mobility business presents a tremendous opportunity, both in terms of electrification and growth. Being the market leaders in this segment, we have an opportunity to drive higher EV penetration in this segment and provide a more sustainable as well as profitable option to microentrepreneurs.” - Rajesh Jejurikar, Executive Director & CEO (Auto & Farm Sector), Mahindra & Mahindra

March 2023 : In a bid to scale up electric three-wheelers and small commercial vehicles (SCVs) that are more affordable, IFC is investing ₹600 crore in a new last mile mobility (LMM) company - a wholly owned subsidiary of Mahindra & Mahindra that will be newly incorporated (“NewCo”). A game changer for micro entrepreneurs in India, the funding will transform lives by boosting their income and paving the way for the auto industry’s seamless shift from fossil fuel to electric vehicles (EVs).
IFC’s first investment in an EV manufacturer in the country and the first in electric three-wheelers globally will be in the form of compulsory convertible instruments at a valuation of up to ₹6,020 crore. The ₹600 crore investment will result in an ownership of between 9.97 percent to 13.64 percent for IFC in NewCo.
NewCo will house the last mile mobility division, including three wheelers (Alfa, Treo, Zor) and four-wheeler SCV (Jeeto). IFC’s financing will help scale up electric mobility in last mile connectivity - passenger and cargo segments - while enabling the development and manufacturing of new generation products in this space. Electric vehicles enable vibration and noise free operations, generate higher earnings for drivers and enable micro entrepreneurship. The business will further generate employment for women, driving equality and inclusion while bolstering India’s climate action agenda.

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