Global investment firm KKR will invest up to $310 million (~₹28.63 billion) and form a partnership with electric bus (e-bus) platform Allfleet and e-bus manufacturer PMI Electro.

The investment will enable KKR to acquire a majority stake in Allfleet and a minority stake in PMI Electro.

The transaction is expected to be completed in mid- 2026.

KKR’s investment will strengthen Allfleet’s ability to collaborate with public transport authorities to expand e-bus fleets across key cities. It 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.

Allfleet India is PMI Electro’s e-bus platform, focused on developing, owning, and operating large-scale electric public transport fleets. It plans to deploy more than 5,000 e-buses, operating under long-term concession and service agreements with multiple state transport authorities.

PMI Electro manufactures electric commercial vehicles in India and offers an electric bus portfolio comprising 7-metre, 9-metre, and 12-metre models, as well as electric school buses. To date, the company has deployed more than 3,000 e- buses across more than 30 cities in India.

The investment marks KKR Global Climate Transition’s first investment in India and its eighth globally, including recent investments in Australia. KKR has committed more than $44 billion to climate and environmental sustainability investments globally so far.

Neil Arora, Partner and Head of KKR’s Climate Transition strategy for Asia Pacific, said, “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.”

In 2024, the Central government launched the PM-eBus Sewa-Payment Security Mechanism Program, with an outlay of ₹34.35 billion ($409 million) to support the procurement and operation of over 38,000 e-buses from FY 2024-25 to FY 2028-29. It has also allocated ₹36.79 billion ($438.1 million) in subsidies under the PM E-Drive program, including support for deploying 14,028 e-buses.