KKR plans to invest $310 million in PMI Electro to expand Allfleet electric bus platform
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, it said on Wednesday.
The deal marks KKR’s first climate change investment in India and comes from its Global Climate Transition strategy, which has made eight investments around the world, 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.
“Electrification of transport 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 Asia Pacific Climate Transition strategy.
Founded in 2017, PMI Electro produces electric commercial vehicles, including 7-meter, 9-meter and 12-meter buses, as well as electric school buses. The company says more than 3,000 PMI buses are deployed in more than 30 Indian cities.
Nearly five years later, PMI launched Allfleet, an electric bus operating platform that develops, owns and operates large-scale public transportation fleets through its subsidiaries. The company plans to operate more than 5,000 e-buses under long-term concession and service agreements with state transportation authorities in key cities.
Allfleet combines electric vehicles, fleet management systems and on-site application capabilities, operating under a franchise-focused model that ensures continuity and performance throughout the lifecycle of public transportation assets.
As India accelerates its transition to decarbonization and cleaner urban mobility, scaling reliable and efficient electric public transport infrastructure becomes increasingly important.
“The distinctive 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 with PMI and leveraging KKR’s global operational expertise and experience investing in climate transformation,” said Arora.
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 to Indian passengers. The platform now offers an integrated solution covering production, ownership, operations and lifecycle support, thanks to 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 scaling and expanding its presence in Indian cities,” said Aanchal Jain, Chief Executive Officer of PMI Electro and Director of Allfleet.
Since 2010, KKR has committed over $44 billion to climate and environmental sustainability investments; these include Zenobē, a UK-based transport electrification and battery storage solutions specialist; CleanPeak, an Australia-based distributed energy platform; and Avantus, a U.S. developer of solar power and solar plus storage.
The transaction is expected to be completed in mid-2026, subject to customary regulatory approvals.
