Private equity major KKR has agreed to invest up to $310 million in a partnership with India’s PMI Electro Mobility and its fleet platform Allfleet, according to an announcement.
Under the deal, KKR will take a majority stake in Allfleet and a minority stake in PMI Electro, a manufacturer of electric commercial vehicles in India. The deal seeks to help scale Allfleet’s electric bus platform and further advance PMI Electro’s manufacturing capabilities.
The transaction represents KKR’s first Global Climate Transition investment in India and the strategy’s eighth investment globally, per the announcement.
The deal gives KKR exposure to a fast-growing segment of India’s commercial vehicle market, where electric buses are gaining traction as central and state authorities push public fleet electrification.
Electric buses accounted for 4.5% of India’s total bus sales in fiscal 2026 through mid-February, up from 3.5% a year earlier, according to publicly available data.
“Transport electrification is a critical pillar of the energy transition, and India, with its scale, urbanisation trends, and decarbonisation 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.
Allfleet, set up in 2022, operates as PMI Electro’s electric bus platform and focuses on developing, owning, and running large-scale public transport fleets.
The company said it is on track to deploy more than 5,000 electric buses under long-term concession and service agreements with multiple state transport authorities.
For PMI Electro, the partnership brings long-term capital as competition intensifies and bus makers prepare for a new wave of deployments under central government programs.
India concluded its largest-ever tender for 10,900 electric buses in December 2025, and ETAuto reported that PMI Electro secured nearly half the orders. Industry estimates cited by the publication suggest electric bus penetration could rise to 13% by fiscal 2028.
“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,” said Aanchal Jain, CEO at PMI Elecro and director at Allfleet.
Other KKR Climate investments include Zenobē, a UK-based transport electrification and battery storage solutions specialist; CleanPeak, an Australian distributed energy platform; and HMC Capital’s Energy Transition Platform, a battery energy storage and renewable energy generation platform in Australia.
It also invested in EGC, an energy service provider in Germany; Dawsongroup, an independent asset leasing business providing a diverse range of business-critical solutions; Avantus, a solar and solar-plus-storage developer in the US; and IGNIS P2X, an industrial decarbonisation platform.
KKR earlier said it continues to view India as an attractive long-term investment market, backed by strong economic growth, rising middle-class spending, deeper capital markets, and expanding opportunities in private equity and infrastructure.
The buyout firm secured an additional $548 million for its third pan-Asia infrastructure fund in the fourth quarter of last year, highlighting robust investor demand for the asset class, which drove its rapid fundraising pace in Oct-December 2025.
