KKR to invest up to $310 million in PMI Electro and Allfleet

MUMBAI: Private equity (PE) firm KKR will invest up to $310 million in PMI Electro Mobility and its electric bus operating platform Allfleet, marking the PE giant’s first climate transition investment in India. As part of the deal, the bulk of the funding will go to Allfleet with KKR acquiring a majority stake in the entity. It will also acquire a minority stake in PMI Electro, the company said in a statement on Wednesday, without disclosing the specifics. Delhi-based PMI Electro manufactures electric commercial vehicles.

Under its global climate transition investment strategy, KKR essentially looks to invest in companies building solutions to support decarbonisation across sectors. The idea is to back growth infrastructure opportunities which require a significant amount of capital. Launched in 2022, Allfleet is on its way to deploy a fleet of more than 5,000 e-buses operating under long-term concession and service agreements with state transport authorities. The funding from KKR will allow the company to expand its footprint across cities, said Aanchal Jain, CEO at PMI Electro and director at Allfleet.

Since 2010, KKR has made more than $44 billion worth of climate and environmental sustainability investments globally. “Transport electrification is a critical pillar of the energy transition, and India with its scale, urbanisation trends and decarbonisation 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, adding that the company will support Allfleet’s next phase of growth. The transaction is expected to close in mid-2026, KKR said.

In November, the PE firm had said that it would look at foraying into new sectors in India besides expanding its presence in the country where it has deployed more than $13 billion since setting up its local office here in 2008.

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