World Bank arm IFC is investing Rs 600 crore in NewCo, which is a subsidiary of Mahindra & Mahindra (M&M). The investment aims to scale up electric vehicles (EVs), including three-wheelers and small commercial vehicles (SCVs). 

This is IFC’s first investment in an EV manufacturer in the country and first in electric three-wheelers globally. The investment will be in the form of compulsorily-convertible instruments at a valuation of up to Rs 6,020 crore. The Rs 600-crore investment will result in an ownership of between 9.97 to 13.64 per cent in NewCo for IFC.  

NewCo will house the last-mile mobility division of M&M, including three-wheelers – Alfa, Treo, Zor – and four-wheeler SCV – Jeeto. IFC’s financing is likely to help scale up electric mobility in last-mile connectivity – passenger and cargo segments.  

 “Decarbonising the transport sector is crucial to achieving the climate goals that India has set for herself. IFC, with its focus on sustainability and boosting prosperity, is an ideal partner for us. With the electrification of the last-mile mobility business at scale, we will move 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,” M&M’s MD and CEO Anish Shah has said.