Mahindra Last Mile raises ₹322 crore at unicorn valuation

Mumbai: Mahindra Last Mile Mobility Ltd (MLMML) achieved unicorn status after raising about ₹322 crore in a funding round led by global impact investor Lightrock at a valuation of ₹10,822 crore.

The Mahindra and Mahindra subsidiary manufactures electric, CNG, petrol, diesel three and four-wheeler passenger and cargo vehicles.

The round also saw participation from existing investors International Finance Corporation (IFC) and the India-Japan Fund (IJF), managed by the National Investment and Infrastructure Fund (NIIF), underscoring rising investor appetite for India's rapidly expanding electric commercial vehicle market.


The fundraise comes at a time when electrification in the L5 electric three-wheeler segment has accelerated sharply, with penetration rising to about 40% from 12% in the past two years. MLML currently has around 40% market share in the category, making it the country's largest electric commercial vehicle maker for the fourth consecutive year.

The company said sales of its electric three-wheelers have grown sixfold in four years. Volumes surged 85% year-on-year in the June quarter of FY27. It also became the first electric commercial vehicle maker in India to cross cumulative sales of 100,000 electric three-wheelers in FY26.

"This investment brings us closer to our goal of deploying one million EVs on Indian roads by 2031 and solidifies our leadership in the electric commercial vehicle sector," said Anish Shah, Mahindra Group CEO and Managing Director.

The group has identified the last-mile mobility business as one of its "growth gems" and plans to launch MLML’s initial public offering (IPO) in the second half of this financial year, Shah said during M&M’s post-earnings media interaction Thursday.

The latest funding round is expected to further strengthen the business ahead of the proposed listing.

Rajesh Jejurikar, executive director and CEO at M&M’s auto and farm business, said the investment reflects investor confidence in the business and the structural shift underway in electric three-wheelers. The company said its vehicles have cumulatively clocked more than six billion electric kilometres.