IFC to Invest Rs 600 Crore in Mahindra's Last-Mile EV Venture
The International Finance Corporation (IFC) is set to invest Rs 600 crore in Mahindra & Mahindra's newly established last-mile mobility company. This marks IFC's first investment in an electric vehicle manufacturer in India and a global first for electric three-wheelers. The funding will be through compulsory convertible instruments, valuing the new venture at approximately Rs 6,020 crore and granting IFC an ownership stake of 9.97 to 13.64 percent. The company will focus on electric three-wheelers, including models like Alfa and Treo, as well as the small commercial vehicle Jeeto. Anish Shah, MD and CEO of Mahindra, highlighted the commitment to achieve 'Planet Positive' status by 2040 through large-scale electrification, aiming to empower micro and women entrepreneurs. The initiative supports India's goal of reducing emissions by 45 percent by 2030 and significantly increasing electric vehicle adoption in key segments. IFC’s investment aligns with its mission to foster sustainable gr
IFC to Invest Rs 600 Crore in Mahindra's Last-Mile EV Venture
The International Finance Corporation (IFC) has announced a substantial investment of Rs 600 crore in a new last-mile mobility company being established by Mahindra & Mahindra. This venture represents IFC's first investment in an electric vehicle manufacturer in India and marks a global first in electric three-wheelers. The investment will take the form of compulsory convertible instruments and is expected to value the new company at approximately Rs 6,020 crore.
With this funding, IFC will acquire an ownership stake ranging from 9.97 percent to 13.64 percent in the newly incorporated subsidiary, which will focus on last-mile mobility solutions, including electric three-wheelers such as Alfa, Treo, and Zor, as well as the four-wheeler small commercial vehicle Jeeto.
Anish Shah, Managing Director and CEO of Mahindra & Mahindra, emphasized the commitment to achieving 'Planet Positive' status by 2040 through the large-scale electrification of last-mile mobility. The initiative is set to empower micro and women entrepreneurs while contributing to India’s ambitious goal of reducing emissions by 45 percent by 2030. The country aims for significant electric vehicle penetration across various segments, including two- and three-wheelers and commercial vehicles.
Hector Gomez Ang, IFC's Regional Director for South Asia, highlighted that this investment represents a critical step towards boosting domestic production of electric vehicles in India, particularly in the three-wheeler and small commercial vehicle markets. Rajesh Jejurikar, Executive Director and CEO of Mahindra's auto and farm sector, reiterated the company's leadership in the segment and the opportunity to enhance electric vehicle adoption, offering sustainable and profitable solutions for microentrepreneurs.
The IFC, part of the World Bank Group, has a global reach across more than 100 countries and reported a record commitment of $32.8 billion to private enterprises and financial institutions in developing regions during the fiscal year 2022. This investment aligns with both IFC's and Mahindra's vision for a greener and more sustainable future in transportation.
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