KKR Invests $310 Million in Allfleet, Gains Majority Stake

Allfleet India

Mumbai: KKR, Allfleet India Private Limited (“Allfleet”), and PMI Electro Mobility Solutions Private Limited (“PMI Electro”) have announced the signing of definitive agreements under which KKR-managed funds will commit up to $310 million to form a strategic partnership aimed at scaling Allfleet’s electric bus (e-bus) platform and strengthening PMI Electro’s manufacturing capabilities.

As part of the transaction, KKR will acquire a majority stake in Allfleet and a minority stake in PMI Electro. The deal marks the first investment by KKR’s Global Climate Transition strategy in India and its eighth globally, including recent investments in Australia.

Established in 2022, Allfleet operates as PMI Electro’s dedicated e-bus platform, focused on developing, owning, and operating large-scale electric public transport fleets.

Currently, Allfleet is on track to deploy over 5,000 e-buses under long-term concession and service agreements with multiple state transport authorities, supporting urban mobility needs across key cities in India.

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Allfleet India: Integrated, End-to-End Solution

As India accelerates its transition toward decarbonization and cleaner urban mobility, the need to scale efficient and reliable electric public transport infrastructure is becoming increasingly critical.

KKR’s investment will support Allfleet’s continued expansion and enhance its ability to collaborate with public transport authorities to deploy e-bus fleets across major cities, contributing to cleaner and more dependable public transport for commuters.

This initiative builds on an integrated, end-to-end solution enabled by the partnership between Allfleet and PMI Electro, spanning manufacturing, ownership, operations, and lifecycle support. PMI Electro is recognized as an early mover in India’s e-bus segment.

Neil Arora, Partner and Head of KKR’s Climate Transition strategy for Asia Pacific, said: “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.

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.”

Aanchal Jain, CEO of PMI Electro and Director at Allfleet, added: “This investment by KKR marks a defining milestone in our journey and is a powerful endorsement of the integrated electric mobility platform we have built at Allfleet.

PMI Electro’s vision is to create a scalable, reliable, and future-ready ecosystem that can transform public transport in India. 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.”

She further stated that alongside KKR, the company will continue to focus on responsible scale-up and expanding its footprint across Indian cities.

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The collaboration reflects the alignment of institutional capital, Indian manufacturing capabilities, and execution expertise in delivering mobility solutions of national relevance.

KKR is making this investment through its Global Climate Transition strategy, marking its latest commitment to India and its first such investment in the country under this strategy.

Since 2010, KKR has committed over $44 billion to climate and environmental sustainability initiatives globally.

The firm’s climate-focused investments include companies such as Zenobē, CleanPeak, HMC Capital, EGC, Dawsongroup, Avantus, and IGNIS P2X.

The transaction is expected to close by mid-2026, subject to customary regulatory approvals.

Author

  • Salil Urunkar

    Salil Urunkar is a senior journalist and the editorial mind behind Sahyadri Startups. With years of experience covering Pune’s entrepreneurial rise, he’s passionate about telling the real stories of founders, disruptors, and game-changers.

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