New Delhi, March 18 -- Private equity firm KKR said it would invest $310 million (approximately Rs 2,865 crore) in Rewari-based electric commercial vehicle manufacturer PMI Electro's e-bus platform Allfleet India Pvt Ltd.
Under the agreement, KKR will acquire a majority stake in Allfleet and a minority stake in PMI Electro, the investment firm said in a press statement. It added that the investment will enable Allfleet to expand e-bus fleets across key cities in collaboration with public transport authorities.
This investment comes a few months after PMI Electro had won almost half of the tenders put by the government for 10,900 electric buses under the Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement (PM E DRIVE) scheme. PMI Electro had won orders for 5,210 buses.
PMI Electro, which offers 7-metre, 9-metre, and 12-metre electric buses in addition to electric school buses, has deployed over 3,000 PMI electric buses in more than 30 Indian cities so far.
Its subsidiary Alfeet, which develops, owns and operates large-scale electric public transport fleets, is set to deploy a fleet of over 5,000 e-buses across key cities in India.
"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.
"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. Alongside KKR, the company will continue to focus on responsible scale-up and expanding its presence across Indian cities," said Aanchal Jain, chief executive officer at PMI Electro and Director of Allfleet.
The transaction is expected to close in mid-2026, subject to customary regulatory approvals, the statement added.
In FY25, PMI Electro's consolidated net revenue was Rs 511.51 crores, a 31% increase from the previous year. However, its operating profits saw a 15% decline to Rs 52.3 crores. Its net losses widened to Rs 50.81 crore from a loss of Rs 5 crore in FY24.
This is KKR's first investment under its Global Climate Transition strategy, which invests in companies where financial performance and positive impact are intrinsically linked and core to the business. Under this strategy, KKR has already invested over $44 billion in eight other companies globally.
Published by HT Digital Content Services with permission from VC Circle.