New Delhi, Oct. 13 -- GreenCell Mobility, the electric bus operator backed by Eversource Capital, has raised Rs 330 crore (about $34.5 million) in equity from Danish impact investor Impact Fund Denmark (IFD), the companies said in a statement on Tuesday.

The fresh capital will support the rollout of about 4,500 electric buses, taking GreenCell's fleet to more than 5,000 vehicles across 105 cities, the statement said.

It did not disclose the stake IFD will hold, the valuation, deployment timeline, or how the rest of the rollout will be funded.

The new fleet target is higher than the 3,700 buses GreenCell said in January it planned to operate. At that time, it ran more than 1,200 electric buses, supported by over 270 charging stations.

"India is a central market for Impact Fund Denmark," IFD chief executive Lars Bo Bertram said, adding that scaling electric transport could help the country's green transition.

GreenCell managing director and CEO Devndra Chawla said the funding gives the company "greater headroom" to execute its order book while maintaining service standards.

Eversource Capital CEO Dhanpal Jhaveri said the next phase would be about deploying the capital "with discipline".

Funding history

GreenCell's recent external funding has come mainly as mezzanine capital. In January, it secured $89 million in mezzanine financing from the International Finance Corporation (IFC), British International Investment (BII) and Tata Capital. Of this, BII committed $33 million. IFC had announced a $37-million mezzanine investment in GreenCell in September 2025.

The September announcement also cited a formal payment security mechanism, a first for the market, meant to reduce payment risks from municipal and state transport undertakings.

GreenCell is wholly owned by Green Growth Equity Fund, a SEBI-registered Category-II alternative investment fund (AIF) with a size of $741 million.

Eversource Capital manages a climate impact fund anchored by India's National Investment and Infrastructure Fund and the UK government's Foreign, Commonwealth and Development Office.

Operations and orders

Founded in 2019 and based in Mumbai, GreenCell operates electric buses and charging infrastructure as a service. It describes itself as India's largest OEM-agnostic e-bus platform, meaning it buys buses from manufacturers rather than making them.

Its NueGo brand, which it calls India's largest premium intercity electric bus service, has a fleet of more than 300 electric buses connecting over 100 cities.

In March, GreenCell, in consortium with EKA Mobility, received a letter of award from the Telangana State Road Transport Corporation for 915 electric buses in Hyderabad under the PM E-DRIVE scheme.

Market scenario

Demand for e-buses in India is driven largely by government programmes. The Centre's PM-eBus Sewa scheme, approved in 2023 with an outlay of Rs 57,613 crore, targets the deployment of 10,000 electric buses in 169 cities.

India's electric bus market reached 4,441 units last year, an increase of 19%.

Competition among e-bus operators is intensifying. JBM ECOLIFE, which received a $100 million loan from IFC alongside GreenCell's mezzanine financing, said in September 2025 that it expected to operate more than 6,500 buses within two years.

Impact Fund Denmark

IFD, formerly known as the Investment Fund for Developing Countries (IFU), is Denmark's state-owned development finance institution and operates under the Danish foreign ministry.

It has made more than 1,300 investments in over 100 countries across Africa, Asia, Latin America and Europe. It invests on commercial terms through equity, loans and guarantees. Green energy and infrastructure are among its priority sectors.

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