KKR to invest upto $310 million in PMI Electro and Allfleet

Synopsis

Private equity firm KKR is investing up to $310 million in PMI Electro Mobility and its e-bus unit Allfleet. KKR will acquire a minority stake in PMI Electro Mobility, the manufacturing arm, and a majority stake in Allfleet, which owns and operates e-buses. This investment aims to accelerate transport electrification in India.

New Delhi: Private equity group KKR will invest upto $310 million in PMI Electro Mobility and its e-bus unit Allfleet, according to an official release.

The investment will be structured to provide funding to both PMI Electro Mobility and Allfleet.

KKR will pick up a minority stake in PMI Electro Mobility which is the manufacturing arm for the e-buses. It will acquire a majority stake in Allfleet which owns and operates e-buses under contracts with various state transport authorities, the release noted.

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“Transport electrification is a critical pillar of the energy transition, and India – with its scale, urbanization 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.

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KKR is making this investment from its Global Climate Transition strategy. This marks KKR’s latest investment in India and first Global Climate Transition investment in the country.

“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,” said Aanchal Jain, chief executive officer, PMI Electro and director, Allfleet.

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Established in 2022, Allfleet is PMI Electro’s e-bus platform, focused on developing, owning, and operating large-scale electric public transport fleets. Allfleet is on course to deploy a fleet of more than 5,000 e-buses, operating under long-term concession and service agreements with multiple state transport authorities supporting urban mobility needs across key cities.

“Alongside KKR, the company will continue to focus on responsible scale-up and expanding its presence across Indian cities. This collaboration reflects the alignment of institutional capital, Indian manufacturing capabilities, and on-ground execution in delivering mobility solutions of national relevance,” said Jain.

Since 2010, KKR has committed more than $44 billion to climate and environmental sustainability investments. Other KKR Climate investments have included Zenobē, a UK-based transport electrification and battery storage solutions specialist, CleanPeak, an Australian distributed energy platform, HMC Capital’s Energy Transition Platform, a battery energy storage and renewable energy generation platform in Australia, EGC, an energy service provider in Germany, Dawsongroup, an independent asset leasing business providing a diverse range of business-critical solutions, Avantus, a solar and solar-plus-storage developer in the US, and IGNIS P2X, an industrial decarbonisation platform.

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