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Mahindra & Mahindra's electric three-wheeler business, Mahindra Last Mile Mobility (MLMML), has become a unicorn after signing agreements to raise Rs 322 crore from global sustainable investment platform Lightrock and existing investors. The latest funding values the company at Rs 10,822 crore, making it one of India's most valuable electric commercial vehicle businesses.
The investment comes as Mahindra trucks continues to strengthen its position in the country's electric last-mile mobility market. In addition, the company said the funding will support its growth plans while helping it expand electric commercial vehicle adoption across India.
Lightrock led the funding round, while existing investors International Finance Corporation (IFC) and India-Japan Fund (IJF) also participated after exercising their pre-emptive rights under the existing shareholders' agreement.
The company will complete the transaction in multiple tranches after receiving the necessary regulatory approvals.
However, Mahindra & Mahindra's shareholding in Mahindra Last Mile Mobility will reduce from 78.11% to 75.79% after the investment. Despite the lower stake, Mahindra will continue to hold management control, and the company will remain its subsidiary.
The latest investment reflects growing confidence in Mahindra's electric commercial vehicle business. Over the last four years, Mahindra has increased its electric three-wheeler sales by nearly six times. Today, the company commands around 40% market share in India's L5 electric three-wheeler segment.
Moreover, Mahindra recorded 85% year-on-year volume growth during the first quarter of FY27. Earlier in FY26, it also became the first electric commercial vehicle manufacturer in India to cross one lakh electric three-wheeler sales, marking another important milestone for the business.
According to the company, electrification in the L5 electric three-wheeler segment has increased from 12% to 40% in just two years. Therefore, the segment has emerged as one of the fastest-growing electric vehicle categories in the country.
Mahindra Group CEO and Managing Director Anish Shah welcomed Lightrock as a new investor and said the investment marks another important milestone for the company's EV journey.
"We welcome Lightrock as a partner marking a pivotal milestone in our last mile mobility initiative. With Lightrock joining alongside IFC and IJF, MLMML has now achieved unicorn status in the electric vehicle market. This investment brings us closer to our goal of deploying one million EVs on Indian roads by 2031."
The company believes the new investment will help it scale operations faster and expand its electric mobility business over the coming years.
Executive Director and CEO (Auto and Farm Sector) Rajesh Jejurikar said the latest investment reflects investor confidence in Mahindra's leadership in the electric commercial vehicle segment.
"With around 40 percent market share in the L5 segment, it is at the forefront of a market that has rapidly scaled from 12 percent to 40 percent electrification in just two years. We are proud to be India's No. 1 electric commercial vehicle manufacturer for the fourth consecutive year."
He added that Mahindra continues to benefit from the rapid electrification of the L5 segment, which has grown significantly over the last two years.
The funding also strengthens Mahindra Group's portfolio of Growth Gems, which includes high-growth businesses that operate independently while attracting strategic and financial investors.
Going forward, Mahindra plans to expand its electric commercial vehicle business with continued investment in technology, production, and last-mile mobility solutions. With fresh capital, strong market leadership, and rising demand for electric three-wheelers, Mahindra Last Mile Mobility has taken another major step in strengthening its position in India's growing EV market.
