Eversource Capital’s green mobility arm, GreenCell Mobility, has raised $89 million in a mezzanine financing round led by British International Investment (BII), IFC, and Tata Capital to accelerate the deployment of zero-emission public transport in India.

The Mumbai-based company operates a manufacturer-agnostic electric bus platform, with over 1,200 e-buses and 270+ charging stations serving both intracity and intercity routes.

The funding will support GreenCell’s plan to expand its fleet to 3,700 electric buses, operating across Delhi, Madhya Pradesh, Andhra Pradesh, Bihar, and Puducherry under government programs such as the National E-Bus Program and PM Seva E-Mobility program.

BII has committed $33 million to the funding round.

Mezzanine financing is a hybrid capital source that blends debt and equity, sitting between senior loans and common stock on a company’s balance sheet, and is ideal for growth, such as acquisitions or expansion, without immediate heavy equity dilution.

The investment aligns with India’s broader push to decarbonize transport, which accounts for about 12% of energy-related emissions, and the government’s target of 30% electric vehicle penetration by 2030.

BII said the investment reflects its climate-focused strategy in India, with electric mobility as a key pillar, and reinforces its broader commitment to supporting green technology, reducing urban air pollution, and accelerating the country’s clean energy transition.

In 2024, the Union Cabinet had approved the ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Program,’ and the ‘PM-eBus Sewa-Payment Security Mechanism Program.’ The PM E-DRIVE Program, with a total outlay of ₹109 billion (~$1.29 billion), focuses on providing demand incentives, deploying electric vehicles, and developing charging infrastructure to support wider EV adoption.

The PM-eBus Sewa-Payment Security Mechanism Program, with an outlay of ₹34.35 billion ($409 million), will support the procurement and operation of over 38,000 electric buses from FY 2024-25 to FY 2028-29.

Earlier, GreenCell Mobility had secured ₹3.07 billion (~$37 million) in green financing from Japan-based bank Sumitomo Mitsui Banking Corporation to deploy a fleet of 350 electric buses across eight cities in the state of Uttar Pradesh.