Mahindra Last Mile Mobility Ltd on Monday said it has received the first tranche of Rs 300 crore out of the proposed Rs 600 crore investment by International Finance Corporation at a valuation of Rs 6,020 crore.
In March 2023, International Finance Corporation (IFC) had committed to invest Rs 600 crore in one or more tranches in a new company housing the last mile mobility division of Mahindra Group.
Subsequently, Mahindra Last Mile Mobility Ltd (MLMML) was incorporated as a subsidiary of Mahindra & Mahindra Ltd and commenced commercial operations in September 2023 pursuant to closing of asset and business transfer agreements with M&M.
"MLMML has since completed other regulatory and procedural requirements and has received the first tranche of Rs 300 crore from IFC," the company said in a statement.
In a regulatory filing, M&M said it received an intimation from MLMML on Monday that it has allotted 30 lakh Compulsorily Convertible Preference Shares (CCPS) of MLMML of Rs 1,000 each at par.
Subsequently, IFC gets "the right to give voting instructions to the company with respect to MLMML to the extent of 5.9 per cent of paid-up equity capital of MLMML until conversion of CCPS", it added.
The partnership with IFC "reflects the shared values and ambitions both entities have demonstrated in their commitment to sustainable, inclusive, and clean mobility solutions", it added.
The company said it will focus on scaling last mile passenger and cargo transportation solutions and would be led by Suman Mishra as its Managing Director and CEO.