Global private equity firm KKR plans to invest $310 million in PMI Electro to scale its electric bus platform Allfleet and strengthen manufacturing capabilities, the companies said Wednesday. This investment marks a significant step toward expanding electric mobility infrastructure in India.
Importantly, the deal represents KKR’s first climate transition investment in India under its Global Climate Transition strategy, which has already backed eight investments worldwide, including recent deployments in Australia. As part of the transaction, KKR will acquire a majority stake in Allfleet while also taking a minority stake in PMI Electro, thereby aligning its interests across both operations and manufacturing.
“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.
Founded in 2017, PMI Electro manufactures electric commercial vehicles, including 7-metre, 9-metre, and 12-metre buses, as well as electric school buses. To date, the company has deployed more than 3,000 buses across over 30 Indian cities, demonstrating its growing footprint in the clean mobility segment.
Subsequently, PMI launched Allfleet nearly five years later as an electric bus operating platform designed to develop, own, and manage large-scale public transport fleets through its subsidiaries. The company now plans to deploy more than 5,000 e-buses under long-term concession and service agreements with state transport authorities in key cities, further accelerating adoption.
Moreover, Allfleet integrates electric vehicles, advanced fleet management systems, and on-ground execution capabilities within a concession-led model. This structure ensures operational continuity and performance throughout the lifecycle of public transport assets, making it a scalable and efficient solution.
As India continues to push toward decarbonization and cleaner urban mobility, scaling reliable electric public transport infrastructure has become increasingly critical. “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.
In addition, KKR’s investment will enable Allfleet to expand its operations and collaborate more effectively with public transport authorities to grow e-bus fleets. This, in turn, will deliver cleaner, more reliable commuting solutions for Indian cities. The integrated platform now offers end-to-end capabilities, 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.
Over the years, KKR has significantly expanded its climate investment portfolio. Since 2010, the firm has committed more than $44 billion toward climate and environmental sustainability initiatives, including investments in Zenobē, CleanPeak, and Avantus.
The companies expect to close the transaction by mid-2026, subject to customary regulatory approvals, thereby marking another milestone in India’s transition toward sustainable transportation.
KKR’s strategic investment in PMI Electro and Allfleet underscores the growing momentum behind electric mobility in India. By combining capital, technology, and operational expertise, the partnership is well-positioned to accelerate the deployment of electric buses and contribute meaningfully to the country’s decarbonization goals while transforming public transportation infrastructure.
