“Electric vehicles enable vibration and noise free operations, generate higher earnings for drivers and enable microentrepreneurship. The business will further generate employment for women, driving equality and inclusion while bolstering India’s climate action agenda,” it added.

The partnership with IFC will enable NewCo to solidify leadership position in last mile mobility segment by induction of a reputed and long-term investor with significant focus on sustainability and development, the release highlighted.

Anish Shah, MD & CEO, Mahindra & Mahindra, said, “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.”

“With transport being the fastest-growing contributor to climate change, it is no longer a question of whether electric vehicles should be adopted at scale, but rather how quickly,” said Hector Gomez Ang, IFC’s Regional Director for South Asia.

Khaitan & Co. are legal advisors to Mahindra & Mahindra and Cyril Amarchand Mangaldas are legal advisors to IFC for the transaction.

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. It works in more than 100 countries, using capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries.

Meanwhile, M&M shares closed 0.42% higher at ₹1,165 apiece on the BSE. During the session, the stock rose as much as 1.7% to ₹1,180.30.

Mahindra mobility business

IFC to invest ₹600 cr in Mahindra’s mobility biz; share rises 2%