Mahindra has raised Rs. 1.926 crore at a valuation of up to Rs. 70,070 crore from BII (British International Investment) as part of forming a new passenger EV vertical
Mahindra & Mahindra is planning to invest more than one billion USD in its electrification operations as it raised Rs. 1.926 crore at a valuation of up to Rs. 70,070 crore from BII (British International Investment) as part of forming a new passenger EV vertical. With compulsory convertible instruments, BII will have 2.75-4.76 per cent ownership in the EV Co.
The initial phase of capital from BII will be invested in around a year on fulfilment of conditions precedent and balance following the completion of some milestones next financial year. It is worth noting that M&M is raising money at almost a similar valuation as Tata Motors as TPG pumped in Rs. 7,500 crore for an 11-15 per cent valuation of around Rs. 70,000 crore.
The electric vertical will aim at bringing new passenger EVs with the total capital infusion at an estimated Rs. 8,000 crore between fiscal 2024 and fiscal 2027 for a new product range. Mahindra and BII will work together to rope in more investors in the new zero-emission vertical to match the required funding in a phased manner.
The EV Co. will utilise production capabilities, product development, design and other ecosystems of M&M. Mahindra is gearing up to unveil its first-ever Born Electric Vision-based EV concepts on August 15, 2022 at a special event in the United Kingdom. It will be followed by the market debut of an electrified compact SUV, likely christened the XUV400.
Mahindra expects to electrify 20 to 30 per cent of its SUV by 2027 and a whole new zero-emission portfolio is waiting in the pipeline. The homegrown SUV specialist recently introduced the Scorpio-N with tremendous reception and it will be followed by a trio of Born Electric Vision range likely previewing a compact SUV, an SUV coupe and a midsize five-seater SUV.
They will adopt an all-new design philosophy and the interior will also be high-tech in nature with the presence of a dual infotainment screen, a driver-centric dashboard accentuated by ambient lighting, a two-spoke design for the steering wheel, a panoramic sunroof, etc. The XUV400 is based on the same X100 platform as SsangYong Tivoli but it will be longer than the XUV300 and is expected to take on Tata Nexon EV.