Mahindra Last Mile Mobility Ltd (MLMML), the electric three-wheeler subsidiary of Mahindra & Mahindra Ltd, has raised Rs 322 crore ($33.8 million) in a funding round led by global investment platform Lightrock.
Existing investors International Finance Corporation (IFC) and the India-Japan Fund (IJF), which is managed by National Investment and Infrastructure Fund (NIIF), according to a stock exchange filing by Mahindra & Mahindra. IFC and IJF participated under their pre-emptive rights as existing shareholders in MLMML.
The transaction values MLMML at a post-money equity valuation of about Rs 10,822 crore ($1.1 billion), taking the company past the $1-billion mark for the first time, the filing said.
The fundraise is to be carried out in tranches, subject to regulatory approvals.
Following the latest funding round, Mahindra & Mahindra's shareholding in MLMML is expected to fall to 75.79% from 78.11% currently.
EV player
This is the third funding round for MLMML. IFC first invested Rs 600 crore in the company in March 2023 at a valuation of up to Rs 6,020 crore. IJF followed in January 2024 with a Rs 400-crore investment at a valuation of up to Rs 6,600 crore.
Following the latest funding round, Lightrock's partner and India head Samir Abhyankar said they are backing a leadership team that had built MLMML into a market leader in electric three-wheelers.
MLMML makes electric three-wheelers and small commercial vehicles, and has been India's largest electric commercial vehicle manufacturer by market share for four years now.
The company said its electric three-wheeler sales have grown sixfold over the past four years, and that it crossed 100,000 units in electric three-wheeler sales in FY26.
Volumes grew 85% year-on-year in the June quarter of FY27. MLMML holds about 40% market share in the L5 three-wheeler category, a segment where electric penetration has risen to roughly 40% from 12% over the past two years, the statement said.
Anish Shah, group chief executive and managing director of Mahindra Group, said the round takes MLMML to unicorn status and moves the company closer to its target of deploying 1 million electric vehicles on Indian roads by 2031.
Mahindra is targeting an initial public offering of the last-mile mobility business in the second half of FY27, Shah has said separately during the company's June-quarter earnings call.