Electric bus maker PMI Electro Mobility Solutions on Wednesday said it has raised $30 million (Rs 250 crore) in the form of convertible securities from Piramal Alternatives, the fund management business of the Piramal Group.
The investment has been made through the Performing Credit Fund (PCF), a sector-agnostic fund of Piramal Alternatives, that caters to the capital needs of mid-market companies and will be used by PMI Electro Mobility Solutions in developing innovative solutions, bringing technological advancements to its production capabilities, and scaling its operations.
Started in 2017, PMI Electro Mobility claims to have more than 1,200 electric buses across 10 states — New Delhi, Uttar Pradesh, Himachal Pradesh, Goa, Maharashtra, West Bengal, Odisha, Gujarat, Kerala, and UT of Ladakh.
According to Tracxn, the company had an annual revenue of $48.2 million as of March 31, 2022.
“With an order book of 2,500 buses that is expected to constantly grow going forward, the investment from Piramal Alternatives will greatly enhance our technological capabilities and catapult our growth trajectory manifold,” said Aanchal Jain, CEO, PMI Electro Mobility.
In Aug, India approved plans for a nearly $7-billion scheme to deploy 10,000 electric buses in 169 cities over a decade, along with charging and associated infrastructure facilities.
“The advent of e-buses 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, particularly those that create a long-term positive impact keeping in mind environment, social, and governance considerations,” Kalpesh Kikani, CEO, Piramal Alternatives, said.
Earlier this year, electric bus maker GreenCell Mobility secured Rs 3,000 crore ($366 million) in debt funding from Rural Electrification Corporation (REC) to buy 3,000 buses and invest in other sustainable transportation services.
With a total of $1.5 billion under management, Piramal Alternatives aims to address credit gaps within the mid-market segment. Its flagship funds include the India Resurgence Fund (India RF), Piramal Performing Credit Fund, Hybrid Growth Private Equity Fund, and India Access Fund (Private Equity Fund of Funds).