MUMBAI: Global private equity firm KKR plans to invest $310 million in PMI Electro to expand its electric bus platform Allfleet and strengthen the company’s manufacturing capabilities, the firms said Wednesday.
The deal marks KKR’s first climate transition investment in India and comes from its Global Climate Transition strategy, which has made eight investments globally, including recent ones in Australia.
As part of the investment, KKR will acquire a majority stake in Allfleet and a minority stake in PMI Electro.
“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.
PMI Electro, founded in 2017, manufactures electric commercial vehicles, including 7-metre, 9-metre, and 12-metre buses, as well as electric school buses. The company says more than 3,000 PMI buses have been deployed across over 30 Indian cities.
Nearly five years later, PMI launched Allfleet, an electric bus operating platform that develops, owns, and operates large-scale public transport fleets through its subsidiaries. The company plans to deploy more than 5,000 e-buses under long-term concession and service agreements with state transport authorities in key cities.
Allfleet combines electric vehicles, fleet management systems, and on-ground execution capabilities, operating under a concession-led model that ensures continuity and performance over the lifecycle of public transport assets.
As India accelerates its transition toward decarbonization and cleaner urban mobility, scaling reliable and efficient electric public transport infrastructure is increasingly crucial.
“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,” Arora said.
KKR’s investment will support Allfleet’s growth and strengthen its ability to collaborate with public transport authorities to expand e-bus fleets, providing cleaner and more reliable service for Indian commuters. The platform now offers an integrated solution spanning manufacturing, ownership, operations, and lifecycle support through its partnership with PMI Electro.
“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,” said Aanchal Jain, chief executive, PMI Electro and director, Allfleet.
Since 2010, KKR has committed over $44 billion to climate and environmental sustainability investments, including Zenobē, a UK-based transport electrification and battery storage solutions specialist; CleanPeak, an Australian distributed energy platform; and Avantus, a solar and solar-plus-storage developer in the US.
The transaction is expected to close in mid-2026, subject to customary regulatory approvals.
