KKR, Allfleet India Private Limited, and PMI Electro Mobility Solutions Private Limited announced definitive agreements for an investment of up to $310 million. As part of the transaction, KKR-managed funds will acquire a majority stake in Allfleet and a minority stake in PMI Electro.
Focus on Electric Bus Platform
Allfleet, established in 2022, operates as the electric bus platform of PMI Electro. The company focuses on developing, owning, and operating electric bus fleets for public transport systems. It is currently working towards deploying more than 5,000 electric buses under long-term agreements with state transport authorities across multiple cities.
Use of Funds and Expansion Plans
The investment is expected to support the expansion of Allfleet’s electric bus operations and enhance PMI Electro’s manufacturing capabilities. The companies plan to increase the scale of electric bus deployment and strengthen collaboration with public transport authorities.
India’s Public Transport Electrification Push
The transaction comes as India continues to expand electric mobility in public transport. Electric buses are being introduced in urban areas as part of efforts to reduce emissions and improve transport systems.
KKR’s Climate Investment Strategy
This transaction marks KKR’s first investment in India under its Global Climate Transition strategy. The firm has previously invested in energy and transport-related businesses in other regions as part of this strategy.
Transaction Timeline
The deal is expected to close by mid-2026, subject to regulatory approvals and customary conditions.
“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. “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.”
