Mahindra & Mahindra raises $250 million for EV business at $9 billion valuation

NEW DELHI: Mahindra & Mahindra (M&M), maker of popular sports utility vehicles (SUVs) such as the Thar and Scorpio, has raised $250 million from UK’s impact investor British International Investment (BII) for its new electric vehicle unit at a valuation of $9.1 billion.

The two partners — M&M and BII — will invest $250 million each into a wholly owned subsidiary of M&M that will be called EV Co. BII will invest the amount in the form of compulsory convertible instruments that will give it 2.75% to 4.76% ownership in the EV Co.

EV Co will focus on four-wheel (4W) passenger electric vehicles with M&M expecting 20-30% of its portfolio to comprise electric vehicles by 2027.

“We want to put our weight behind electric vehicles and not hybrids,” Rajesh Jejurikar, executive director – auto & farm sectors, Mahindra & Mahindra, told TOI.

The total capital infusion for the EV Co is pegged at $1 billion between FY24 and FY27 for the planned product portfolio. M&M and BII will work jointly to bring other investors in the EV Co to match the funding requirement in a phased manner.

“The Mahindra Group aims to be Planet Positive by 2040. Mahindra has been a pioneer in the electric vehicles space, and we are confident we will be the leaders in the electric SUV market in the future,” said Anish Shah, MD & CEO, M&M. While M&M will use the funds to create and market an electric SUV portfolio with advanced technologies, the development comes at a time when market leader the Tata Group is upping the ante in the fledgling EV industry.

The two partners – M&M and BII – will invest $250mn each into a wholly owned subsidiary of M&M that will be called EV Co.

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