According to reports, British International Investment (BII), the UK’s development finance institution and impact investor and Mahindra & Mahindra (M&M) have executed a binding agreement to invest up to Rs.1,925 crore ($ 250 million) each into a wholly owned subsidiary of M&M that will be newly incorporated EV Co.

Reports suggest that, BII will invest up to Rs.1,925 crores in the form of compulsory convertible instruments at a valuation of up to Rs. 70,070 crores, resulting in 2.75 percent to 4.76 percent ownership for BII in the EV Co.

The EV Co. will focus on four-wheel (4W) passenger electric vehicles.

According to the company, BII’s investment is designed to significantly accelerate the availability and adoption of electric vehicles in India and other markets served by M&M.

The investment alongside M&M in the new EV company supports BII’s undertaking that at least 30 percent of its total investments will be in climate finance.

The EV Co. will significantly leverage the broader manufacturing capabilities, product development, and design organizations along with the ecosystem of suppliers, dealers, and financiers of M&M.

The funds will be utilized primarily to create and market a world-class electric SUV portfolio with advanced technologies.

Anish Shah, MD & CEO, Mahindra & Mahindra Ltd says, “In BII, we have found a like-minded long-term partner who is committed to combating the climate emergency. The Mahindra Group aims to be Planet Positive by 2040. Mahindra has been a pioneer in the electric vehicles space, and we are confident we will be the leaders in the electric SUV market in the future.”