Mahindra Last Mile Mobility becomes unicorn; Lightrock leads Rs 322-crore funding

Mahindra & Mahindra said on Thursday its electric three-wheeler unit, Mahindra Last Mile Mobility Ltd (MLMML), has achieved unicorn status after raising about Rs 322 crore in a funding round led by global investment firm Lightrock, valuing the company at Rs 10,822 crore (approximately US$1.24 billion). This comes ahead of its planned initial public offering, likely in the second half of the financial year 2027.

The fresh funding round also saw participation from existing investors, including the International Finance Corporation and the India-Japan Fund, a fund managed by the National Investment and Infrastructure Fund Ltd. The investment underscores investor confidence in India's electric commercial vehicle market, where Mahindra has emerged as the leading player in electric three-wheelers.

Sales Momentum Fuels the Valuation

Mahindra said the last-mile mobility business has recorded a six-fold increase in electric three-wheeler sales over the past four years. It posted an 85% year-on-year increase in volumes in the first quarter of the financial year 2027. It became the first electric commercial vehicle manufacturer in India to cross cumulative sales of 100,000 electric three-wheelers during financial year 2026. The company currently holds about a 40% share of the L5 electric three-wheeler market.

Leadership on the Unicorn Milestone

"We welcome Lightrock as a partner marking a pivotal milestone in our last mile mobility initiative, highlighting the transformative potential of our growth gems," Group Chief Executive Officer and Managing Director Anish Shah said.

"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 1 million EVs on India roads by 2031 and solidifies our leadership in the electric commercial vehicle sector," he added.

Rajesh Jejurikar, executive director and CEO of the Auto and Farm Sector at Mahindra & Mahindra, said the investment reinforces the company's leadership in the electric commercial vehicle segment.

"With ~40% market share in the L5 segment, it is at the forefront of a market that has rapidly scaled from 12% to 40% electrification in just two years. We are proud to be India's No.1 electric commercial vehicle manufacturer for the fourth consecutive year," he said.

Mahindra said the funding comes as electric three-wheeler penetration has risen from 12% to 40% over the past two years, providing significant growth opportunities for its last-mile mobility business.