News, 10 January 2025
The UK’s impact investor and development finance organization, British International Investment, has working to being capital investment for India’s electric vehicle sector.
In order to hasten the availability and uptake of electric vehicles (EVs) in India and other countries, Mahindra & Mahindra and BII established a cooperation in July 2022.
As part of this cooperation, BII committed up to INR 1,925 crore to the business, of which INR 1,200 crore had been spent by September 2023. M&M launched the anchor investment into a new EV company.
A pledge to collaborate in the future to attract more like-minded investors to EV financing was another aspect of the cooperation. In 2023, Temasek became the second investor to join the alliance.
And today, BII fulfilled its 2022 commitment by investing an additional INR 650 crore into Mahindra Electric Automobile Limited (MEAL) as part of its last tranche, based on a collaborative assessment with M&M regarding the finance requirement.
This investment will be made through BII India EV LP, its managed vehicle and current shareholding entity, which has been funded by a group of renowned climate-focused investors under the direction of BII. The first Finnish global emerging markets impact fund, OP Finnfund Global Impact Fund I, Finland’s development finance organization and impact investor, and the Asian Infrastructure Investment Bank, a multilateral development agency, are all part of the syndicate.
The shareholders of MEAL, which are still Mahindra & Mahindra, Temasek, BII, and BII India EV LLP, are unaffected by the investment.
About British International Investment
British International Investment (BII) is the development finance institution of the UK government, formerly known as the Commonwealth Development Corporation (CDC Group). Established in 1948, its primary mission is to promote sustainable development and economic growth in developing countries by providing capital and support for businesses and projects.
