GreenCell Mobility raises $89M to expand its electric bus fleet
The mezzanine funding comes from International Finance Corporation, British International Investment, and Tata Capital.
Eversource Capital’s electric bus arm GreenCell Mobility has raised $89 million in mezzanine funding from International Finance Corporation (IFC), British International Investment (BII), and Tata Capital.
Mezzanine financing is a hybrid source of capital that blends debt and equity, ideal for growth and expansion without immediate heavy equity dilution.
The funds will be used to expand the company's fleet to 3,700 buses, including buses won by the company on intra-city routes across Delhi, Madhya Pradesh, Andhra Pradesh, Bihar, and the Union Territory of Puducherry in auctions. These auctions were conducted by the National E-Bus Program and the PM Seva E-Mobility initiative.
GreenCell currently manages over 1,200 electric buses.
The funding comes months after IFC said it was infusing $37 million mezzanine capital in GreenCell Mobility and $100 million to JBM ECOLIFE to help deploy electric buses and charging stations across 39 municipalities.
“Through this funding round for GreenCell Mobility (GCM), we are deepening our partnership with IFC, BII and Tata Capital (leaders in sustainable investments)," said Dhanpal Jhaveri, Vice Chairman, Everstone Group and CEO, Eversource Capital.
"The transaction exemplifies the catalytic role that private, development and institutional capital can play in accelerating India’s clean transport revolution. GCM’s expanded operations will drive transformation efficient transportation to cities and commuters while delivering returns,” he added.
A slew of electric bus manufacturers have raised funding in recent times, including EKA Mobility which raised Rs 500 crore from the National Investment and Infrastructure Fund-managed India-Japan Fund and JBM Auto.
“Electrifying buses is central to India’s urban transformation agenda, and our mezzanine investment in GreenCell will accelerate the rollout of sustainable public transport for thousands of people across India’s Tier II and III cities," said Katherine Koh, Regional Industry Manager for Infrastructure and Natural Resources, Asia and Pacific IFC.
"It will create jobs while catalysing private capital through innovative financing and payment-security models. Together, this approach strengthens economic growth and positions India at the forefront of how cities worldwide finance the next generation of urban transport,” she added.