KKR to invest $310 million in Gurugram-based PMI Electro to scale electric bus platform

Private equity firm KKR on Wednesday announced an investment commitment of up to $310 million to acquire a majority stake in Allfleet India Pvt Ltd and a minority stake in Gurugram-based electric commercial vehicle manufacturer PMI Electro Mobility.

KKR-managed funds will form a strategic partnership to help scale Allfleet’s electric bus platform and further advance PMI Electro’s manufacturing capabilities, the global investment firm said.

The transaction marks the first KKR Global Climate Transition investment in India and the strategy’s eighth investment globally, including recent investments in Australia.

PMI Electro Mobility pipped legacy automakers like Tata Motors and Ashok Leyland to bag the biggest order of 5,210 electric buses under the Rs10,900 crore PM E-Drive scheme.

“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.

Established in 2022, Allfleet is PMI Electro’s e-bus platform, focussed 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, the statement said.

KKR said its investment will support Allfleet’s continued growth and strengthen its ability to collaborate with public transport authorities to expand e-bus fleets across key cities and help deliver cleaner and more reliable public transport for Indian commuters. This builds on an integrated, end-to-end solution spanning manufacturing, ownership, operations, and lifecycle support enabled by the ongoing partnership between Allfleet and PMI Electro, an early mover in e-buses in India. Since 2010, KKR has committed more than $44 billion to climate and environmental sustainability investments.

Aanchal Jain, CEO, PMI Electro and Director, Allfleet, said: “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.”
“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,” Jain added.