BII would provide $15 million of debt financing to Mumbai-based fleet operator Everest Fleet and $15 million in equity funding for EV manufacturer TI Clean Mobility, a subsidiary of Tube Investments India. It would also invest $3.5 million in EV component maker Vecmocon.
The investment aims to address key barriers to EV adoption by enhancing manufacturing capabilities and providing affordable financing options, BII said in a news release.
With these new deals, BII’s total commitments to India’s EV sector have reached $328 million. The organisation also reiterated its plan to allocate up to $1 billion toward climate-mitigating initiatives and green technology innovations in India in the coming years.
BII said the funding would enable Everest Fleet to expand its EV portfolio by adding up to 1,300 new vehicles, creating job opportunities for drivers in cities such as Mumbai and Delhi.
Previously BII has provided financing to LoadShare, a last-mile logistics provider, to grow its electric two-wheeler fleet. It has also invested in EV manufacturer Euler Motors, EV distribution and financing platform Turno and a battery-swapping network Battery Smart.
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In 2022, the institution had committed up to $250 million to a new passenger EV venture in partnership with Mahindra & Mahindra.“EVs remain a nascent sector in India. This is where BII, as the UK’s DFI, can support pioneering companies to contribute to India’s energy transition and decarbonisation journey,” said Abhinav Sinha, managing director and head of technology and telecoms at BII. “Our approach to investing in the EV sector goes beyond manufacturing EVs and components; it also aims to enable people to afford an EV and secure sustainable jobs,” he said.
In September, Everest Fleet raised $30 million in its ongoing Series C funding round, led by Uber India, to expand its clean energy vehicle fleet, including electric and compressed natural gas vehicles.
Speaking at the annual convention of the Society of Indian Automobile Manufacturers last month, union minister for road transport and highways Nitin Gadkari predicted that the Indian EV market could reach Rs 20 lakh crore by 2030, with annual sales of 10 million units across the EV ecosystem.
