Mahindra receives funding worth ₹650cr to expand EV business
What's the story
Mahindra Electric Automobile Limited (MEAL) has received a final tranche of ₹650 crore funding from British International Investment (BII).
In exchange for the investment, BII will acquire a stake between 2.64% and 4.58% in MEAL, according to a company filing today.
The partnership was formed two years ago to accelerate the growth of Mahindra's four-wheeled passenger EV business.
Investment details
BII's total investment in MEAL lower than initially planned
BII, a UK government-backed development financial institution, had originally planned to invest ₹1,925 crore in two tranches into MEAL.
The first tranche of ₹1,200 crore was completed in June 2023.
However, the second tranche has been reduced from its original proposal of ₹725 crore as certain milestones agreed upon between the companies were not met.
Strategic moves
Temasek's investment and Mahindra's future plans
In 2023, Temasek also agreed to invest ₹1,200 crore in MEAL in tranches at a valuation of up to ₹80,580 crore.
This would give it an ownership stake between 1.49% and 2.97%.
As part of its EV vision, the Mahindra Group plans to invest ₹12,000 crore between FY25-27 for setting up a manufacturing facility, and developing and producing its upcoming electric SUVs.