IFC to invest Rs 600 crore in M&M’s new last mile mobility company

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26 Aug, 2025 12:21

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The International Finance Corporation (IFC) is set to invest Rs 600 crore at a valuation of up to Rs 6,020 crore in Mahindra & Mahindra’s new wholly owned subsidiary last mile mobility (LLM) company, the company informed the exchanges on March 22.

At 11:29 am M&M was quoting at Rs 1,171.70, up Rs 11.55, or 1.00 percent. It touched an intraday high of Rs 1,180.30 and an intraday low of Rs 1,166.90.

The investment will be in form of compulsory convertible instruments at a valuation of Rs 6,020 crore and will result in an ownership of between 9.97 percent and 13.64 percent for IFC in the new company.

The investment will be aimed at scaling up M&M’s affordable electric three-wheelers and small commercial vehicles (SCVs) — including Alfa, Treo, Zor; and Jeeto, respectively. This is the last mile passenger and cargo segments, and will help generate employment for women, driving equality and inclusion while bolstering climate action, as per the statement.

This is IFC’s first investment in an electric vehicle (EV) manufacturer in India and the first in electric three-wheelers globally.

Anish Shah, MD & CEO of M&M said decarbonising the transport sector is “crucial” to achieving climate goals and this move is a “step further in our commitment to be ‘Planet Positive’ by 2040. This also presents a tremendous opportunity for growth for micro and women entrepreneurs.”

Hector Gomez Ang, IFC’s Regional Director for South Asia said it is “no longer a question of whether electric vehicles should be adopted at scale, but rather how quickly”.

“India is the largest three-wheeler market globally, and this investment marks a significant step towards scaled domestic production of EVs catering to this segment, as well as SCVs. By supporting a leading market player, IFC hopes to encourage other large automotive manufacturers to follow suit, driving EV adoption across India and helping the government deliver on its climate targets,” Gomez Ang said.

Rajesh Jejurikar, ED and CEO (Auto & Farm Sector) of M&M said the last mile mobility business presents a tremendous opportunity. “We are excited about leveraging the World Bank Group’s expertise in the EV sector to create a viable ecosystem with robust environmental and social practices, as well as build knowledge, innovation, and capacity,” he said.

Khaitan & Co. are legal advisors to Mahindra & Mahindra and Cyril Amarchand Mangaldas are legal advisors to IFC for the transaction.