Private equity firm KKR enters India’s electric bus market
It is KKR’s Global Climate Transition Fund that has now made its first investment in India: funds managed by KKR will invest up to $310 million in a strategic partnership with PMI Electro Mobility and its platform, Allfleet. The goal is to expand Allfleet’s electric bus platform and further strengthen PMI Electro’s manufacturing capabilities. As part of the investment, KKR will acquire a majority stake in Allfleet and a minority stake in PMI Electro.PMI Electro was founded in 2017 and today positions itself as India’s leading electric bus manufacturer, with over 2,900 battery-electric buses already operating in 31 Indian cities. Its portfolio includes electric buses in 7-, 9-, and 12-metre lengths, as well as electric school buses. On the English-language site of electrive, we have frequently reported on PMI Electro’s e-bus deliveries.Allfleet, in turn, was established in 2022 as PMI Electro’s e-bus platform. The company focuses on developing, owning, and operating large electric bus fleets for public transport. According to the partners, Allfleet is currently on track to deploy a fleet of over 5,000 battery-electric buses, which will be operated under long-term concession and service agreements with various state-owned transport authorities to meet urban mobility demands in key cities.“Transport electrification is a critical pillar of the energy transition, and India – with its scale, urbanisation trends, and decarbonization ambitions – represents one of the most significant opportunities for the sector globally,” said Neil Arora, Partner and Head of KKR’s Climate Transition strategy for Asia Pacific.“The differentiated combination of Allfleet’s proven, scalable platform and PMI’s manufacturing and service expertise stands out as a full-service solution in this market. We look forward to supporting Allfleet’s next phase of growth by working together with PMI and leveraging KKR’s global operational expertise and experience investing across climate transition.”Aanchal Jain, CEO, PMI Electro and Director, Allfleet, said: “This investment by KKR marks a defining milestone in our journey and is a powerful endorsement of the integrated electric mobility platform we have built at Allfleet. PMI Electro’s vision is to create a scalable, reliable, and future-ready ecosystem that can transform public transport in India. As our cities grow and mobility needs evolve, clean, efficient, and accessible public transport will play a central role in shaping a more sustainable future.”Among KKR’s other climate investments are Zenobē, a British specialist in transport electrification and battery storage solutions, and EGC, an energy service provider based in Düsseldorf, Germany.businesswire.com
