Alternative asset and private equity investor KKR announced the formation of a new strategic partnership with electric commercial vehicle manufacturer PMI Electro and its electric bus platform Allfleet India, aimed at scaling electric public transport infrastructure across India.

Under the agreement, KKR will acquire a majority stake in Allfleet and a minority stake in PMI Electro, committing up to $310 million to support the expansion of Allfleet’s electric bus platform and advance PMI Electro’s manufacturing capabilities.

Launched in 2022, Allfleet is PMI Electro’s e-bus platform, focused on developing, owning, and operating large-scale electric public transport fleets, with operations integrating electric vehicles, fleet management systems, and execution capabilities to support the deployment and management of public transport services. According to the companies, Allfleet is on course to deploy a fleet of more than 5,000 e-buses, operating under long-term concession and service agreements with multiple state transport authorities supporting urban mobility needs across key cities.

KKR said that the investment will enable Allfleet to accelerate its growth and deepen collaboration with public transport authorities to deploy electric bus fleets across key cities, supporting the delivery of cleaner and more reliable transportation solutions for urban populations.

Aanchal Jain, CEO, PMI Electro and Director, Allfleet, said:

“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.”

The transaction marks the first investment in India for KKR’s Global Climate Transition Strategy, launched by the firm in August 2023, and dedicated to investing in solutions at scale to support the transition to a low-carbon economy.

The transaction is expected to close in mid-2026.

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

“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.”