KKR to invest up to $310 million in India e-bus deal

March 18 (Reuters) - U.S. private equity firm KKR KKR.N will invest up to $310 million through a partnership with Indian electric commercial vehicle maker PMI Electro Mobility Solutions and its e-bus platform Allfleet India, the companies said on Wednesday.

KKR will acquire a majority stake in Allfleet and a minority holding in PMI Electro, they said, without disclosing further details.

PMI Electro manufactures electric commercial e-buses, including 9-meter, 12-meter and school buses, while Allfleet focuses on developing and operating large-scale electric public transport fleets.

Allfleet is set to deploy a fleet of more than 5,000 e-buses under agreements with multiple state transport authorities.

The investment comes as the Indian government's PM-eBus Sewa scheme, a programme designed to expand electric bus services, aims to deploy 10,000 electric buses on a Public Private Partnership (PPP) model across urban areas. The scheme has an estimated cost of 576.13 billion rupees ($6.23 billion), according to its website.

"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. Alongside KKR, the company will continue to focus on responsible scale-up and expanding its presence across Indian cities," Aanchal Jain, CEO of PMI Electro, said in a statement.

The deal is expected to close in mid-2026, subject to regulatory approvals, the companies said.

($1 = 92.4640 Indian rupees)