Push to EV segment: Mahindra & Mahindra may raise Rs 5,000cr from British International and others

The automobile maker Mahindra & Mahindra (M&M) is in advanced talks to raise up to Rs 5,000 crore ($605 million) for its

electric vehicle

According to the Economic Times, the British development financier would make its second round investment in the manufacturer with its headquarters in Mumbai if the discussions on Mahindra Electric Automobile are successful. According to the article, which cited anonymous sources, the deal's worth is anticipated to be 10–15 per cent higher than the prior round of fundraising, which valued Mahindra's EV business at Rs 70,070 crore ($9. 1 billion). It further stated, BII and Mahindra Electric have a deal in place for BII to inject Rs 1,925 crore ($250 million) in July 2022 via mandatory convertible preference shares, which would result in a holding of 2.75 to 4.76 per cent, depending on milestones reached.

Citing a Mahindra representative, financial daily stated via email: "Our EV business continues to attract interest from investors, even though we have not appointed a banker to begin fundraising." In order to prevent dilution, "our approach has been consistent in raising a small amount of funds."

According to the company's routine disclosures to stock markets, Mahindra has budgeted close to Rs 10,000 crore to build a factory in Telangana to produce electric three- and four-wheelers between FY22 and FY27.

Between April and October 2025, the manufacturer of the Scorpio, Thar, and XUV line of SUVs plans to introduce five new EV vehicles. By FY27, M&M anticipates that the percentage of electric SUVs in its whole SUV lineup will be 20–30%, or, at the top end, 200,000 EVs annually.