Electric Bus Manufacturer PMI Secures ₹2.5 Billion Investment from Piramal

The investment aligns with the PM-eBus Sewa program for green mobility

October 26, 2023


PMI Electro Mobility Solutions, an electric bus manufacturer based in Delhi National Capital Region, has secured a ₹2.5 billion (~$150.29 million) investment from Piramal Alternatives through the Performing Credit Fund (PCF) in the form of convertible securities to advance green mobility efforts, facilitating innovation, technological integration and business expansion.

PMI’s 2,500 electric bus order book is expected to grow further with the help of the investment from Piramal Alternatives, a mid-market sector-agnostic capital support fund supported by the Piramal Group.

ICICI Securities was the advisor to PMI Electro Mobility for the fundraising.

Aanchal Jain, CEO of PMI Electro Mobility, welcomed the growing demand for electric buses and the recent launch of the PM eBus Sewa program as a contribution to India’s net-zero emissions goals. He said, “It is a cause we strongly believe in, and it is indeed our privilege to be part of this journey and contribute to the nation’s ambitious target.”

Established in 2017, PMI Electro has an annual production capacity of 1,500 electric commercial vehicles, including three electric buses, which can be expanded to 2,500-3,000 units. The company reported ₹3.8 billion (~$45.69 million) revenue in the last fiscal year, while its parent company, PMI Coaches, has consistently generated revenue of around ₹1 billion (~$12.02 million) annually.

Kalpesh Kikani, CEO of Piramal Alternatives, emphasized the importance of sustainable financing and expressed the company’s commitment to driving green mobility efforts throughout the country. He remarked, “The advent of E-bus for transport, though nascent now, is poised for rapid growth in the coming time. We will keep looking at potential opportunities for investments in the EV space.”

In August, the Union Cabinet approved the ₹576 billion (~$6.9 billion) “PM-eBus Sewa” program to deploy 10,000 e-buses in cities with 300,000+ populations, with a focus on enhancing urban mobility, bridging the urban-rural gap, and promoting cleaner, more sustainable transportation.

In 2021, PMI Electro Mobility partnered with Panasonic to establish EV charging infrastructure in 17 Indian cities for more than 1,000 electric buses, reducing charging time to 40 minutes. This initiative aligns with the FAME Phase-II program, which promotes electrification by providing incentives for 7,090 e-buses and supporting the development of 2,877 EV charging stations in 68 cities nationwide.