PMI Electro and Allfleet receive $310M investment commitment from KKR

KKR, a global investment firm, has signed definitive agreements to invest up to $310 million in a strategic partnership with PMI Electro Mobility Solutions and its electric bus platform, Allfleet India. Under the transaction, KKR-managed funds will acquire a majority stake in Allfleet and a minority stake in PMI Electro. The investment marks the first India deal under KKR’s Global Climate Transition strategy.

Established in 2022, Allfleet operates as an electric bus platform focused on developing, owning, and operating public transport fleets. The platform is expected to deploy more than 5,000 electric buses under concession and service agreements with state transport authorities across multiple cities.

The investment is intended to support the expansion of Allfleet’s operations and the scaling of electric bus deployments. It will also support PMI Electro’s manufacturing activities. The partnership combines fleet operations, manufacturing, and service capabilities across the electric bus value chain. The transaction is expected to close in mid-2026, subject to regulatory approvals.

Neil Arora, Partner and Head of Climate Transition for Asia Pacific at KKR, stated that “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. 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. 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.”

KKR is making the investment through its Global Climate Transition strategy. The firm has committed over $44 billion to climate and environmental sustainability investments since 2010. Its previous investments include companies such as Zenobē (a UK-based transport electrification and battery storage solutions specialist), CleanPeak Energy (an Australian distributed energy platform), HMC Capital’s Energy Transition Platform (a battery energy storage and renewable energy generation platform in Australia), EGC (an energy service provider in Germany), Dawsongroup (an independent asset leasing business providing a diverse range of business-critical solutions), Avantus (a solar and solar-plus-storage developer in the US), and IGNIS P2X (an industrial decarbonisation platform).

PMI Electro Mobility Solutions manufactures electric buses in 7-metre, 9-metre, and 12-metre configurations, including school buses. The company has deployed more than 3,000 electric buses across over 30 cities in India.

Also read: RIICO allots land for PMI Electro Mobility’s ₹1,200 crore electric bus plant in Rajasthan