New Delhi, Oct. 17 -- The India-Japan Fund (IJF), an investment vehicle managed by government-backed National Investment and Infrastructure Fund (NIIF), has invested Rs 500 crore ($56.8 million) in Pune-based EKA Mobility, an electric vehicle manufacturer and a subsidiary of Pinnacle Industries, which makes automotive interiors.

The fresh capital will be used to expand EKA Mobility's manufacturing capacity, research and development, supply chain infrastructure, and marketing, NIIF said in a release.

EKA Mobility's zero-emission product portfolio includes electric buses (7m, 9m, and 12m variants), intercity coaches, three-wheeler passenger and cargo vehicles, heavy-duty trucks (55T and 7T), and small commercial vehicles in the 1.5T, 2.5T, and 3.5T categories.

The Rs 4,900 crore IJF is NIIF's first bilateral fund, majority-owned (51%) by the Japanese government-backed Japan Bank for International Co-operation (JBIC), while the Indian government holds the remaining 49%.

IJF focuses on India's climate and energy transition sectors, including renewable energy, e-mobility, and circular economy themes such as waste management and water. It also aims to promote investments by Japanese companies in India, including collaboration between Indian and Japanese companies across sectors.

Before investing in EKA Mobility, the IJF had invested in two other Indian companies-Mahindra Last Mile Mobility Ltd (MLMML) and Ather Energy.

MLMML houses Mahindra & Mahindra Group's last-mile mobility business, which includes three-wheelers (Alfa, Treo, Zor) and four-wheeler SCV (Jeeto) brands.

Ather Energy is an electric two-wheeler company, with over 200 outlets and around 2,000 fast-chargers across the country.

NIIF manages $4.9 billion across four strategies: infrastructure, private markets, growth equity, and climate investments. It typically looks to invest across commercially attractive sectors and asset classes in India.

"Together with our partner NIIF, JBIC group, including our subsidiary JBIC IG Partners, which is supporting NIIF in promoting Japanese investments in India through the IJF initiative, will continue to contribute to deepening the bilateral relationship between India and Japan," said Makoto Uchida, senior managing director at Japan Bank for International Cooperation (JBIC) and executive director at JBIC IG Partners.

Published by HT Digital Content Services with permission from VC Circle.