KKR has agreed to invest up to $310 million in a strategic partnership with electric bus manufacturer PMI Electro Mobility Solutions Private Limited and its operating platform, Allfleet India Private Limited, the companies announced on March 18, 2026, in Mumbai.
Under the deal, KKR-managed funds will acquire a majority stake in Allfleet and a minority stake in PMI Electro. The transaction is expected to close by mid-2026, subject to customary regulatory approvals.
This investment marks the first deployment of KKR’s Global Climate Transition strategy in India and the eighth globally, following recent projects in Australia. The capital will be used to scale Allfleet’s urban fleet operations and advance PMI Electro’s manufacturing capabilities, reinforcing an integrated model that spans vehicle production, fleet ownership, daily operations, and lifecycle maintenance.
Allfleet, established in 2022, is PMI Electro’s dedicated bus operating platform. It develops, owns, and operates electric public transport fleets through long-term concession agreements with multiple state transport authorities. The company plans to deploy over 5,000 e-buses, positioning itself as one of India’s larger fleet operators in the emerging electric public transport sector.
The business uses a concession-led model to ensure performance and continuity across the lifecycle of public transport assets. Fleet management systems and on-ground execution capabilities are integrated to support day-to-day operations.
PMI Electro, the manufacturing arm, produces electric commercial vehicles in 7-metre, 9-metre, and 12-metre configurations, including electric school buses. To date, over 3,000 PMI electric buses operate across more than 30 cities in India, serving urban and semi-urban routes.
KKR’s investment targets both ends of the value chain: the majority stake in Allfleet provides exposure to fleet operations and concession-based revenues, while the minority stake in PMI Electro connects the investment to the manufacturing supply chain underpinning Allfleet’s growth. The integrated approach—covering production, deployment, management, and maintenance—is relatively rare in India, where manufacturing and fleet operations are typically separate.
India’s urban bus networks are a key focus for decarbonization, with policy initiatives such as the PM e-Bus Sewa scheme supporting electric bus deployment. Demand has grown due to falling battery costs, improved charging infrastructure, and supportive government policies, though scaling operations requires significant capital for vehicles, depots, and technology.
KKR has been active in climate-focused investments for over a decade, committing more than $44 billion since 2010. Previous Global Climate Transition investments include Zenobē (UK), CleanPeak (Australia), HMC Capital’s Energy Transition Platform (Australia), EGC (Germany), Dawsongroup, Avantus (USA), and IGNIS P2X.
Neil Arora, Partner and Head of KKR’s Climate Transition strategy for Asia Pacific, highlighted India’s urbanization and decarbonization targets, calling it a significant market for transport electrification. Aanchal Jain, CEO of PMI Electro and Director of Allfleet, described the deal as a milestone for the integrated mobility platform, emphasizing the combined potential of domestic manufacturing, operational execution, and institutional capital to expand electric public transport in Indian cities.
