KKR to Invest $310 Million in PMI Electro to Expand Allfleet Electric Bus Platform

KKR to Invest $310 Million in PMI Electro for Electric Bus Expansion

Global private equity firm KKR has announced plans to invest $310 million in PMI Electro, a leading manufacturer of electric commercial vehicles, to expand its electric bus platform Allfleet and strengthen the company's manufacturing capabilities.

This deal marks KKR's first climate transition investment in India, and comes from its Global Climate Transition strategy, which has made eight investments globally, including recent ones in Australia. KKR will acquire a majority stake in Allfleet and a minority stake in PMI Electro.

Transport electrification is a critical pillar of the energy transition, and India represents one of the most significant opportunities for the sector globally. PMI Electro, founded in 2017, manufactures electric commercial vehicles, including 7-metre, 9-metre, and 12-metre buses, as well as electric school buses. The company has deployed over 3,000 buses across more than 30 Indian cities.

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Allfleet is an electric bus operating platform that develops, owns, and operates large-scale public transport fleets through its subsidiaries. The company plans to deploy over 5,000 e-buses under long-term concession and service agreements with state transport authorities in key cities. Allfleet combines electric vehicles, fleet management systems, and on-ground execution capabilities, operating under a concession-led model that ensures continuity and performance over the lifecycle of public transport assets.

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 for Indian commuters. The platform now offers an integrated solution spanning manufacturing, ownership, operations, and lifecycle support through its partnership with PMI Electro.

KKR has committed over $44 billion to climate and environmental sustainability investments since 2010, including investments in Zenobē, a UK-based transport electrification and battery storage solutions specialist, and CleanPeak, an Australian distributed energy platform.

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

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