Greencell secured $55 million in funding from DFIs ADB and AIIB
- ByStartupStory | November 7, 2022
GreenCell Express, an electric bus manufacturer, has received a $55 million funding package from the Asian Development Bank (ADB), the Asian Infrastructure Investment Bank (AIIB), and the Clean Technology Fund (CTF) to create 255 electric battery-powered buses (e-buses).
It will also get $325,000 in grants from the Climate Technology Fund (CTF) and $5.2 million in funding from Goldman Sachs and Bloomberg’s Climate Innovation and Development Fund (CIDF). According to the announcement, the CIDF funding will help to decarbonize 100 e-buses by utilizing solar power and battery energy storage devices.
“Electrifying transportation is a key driver of reducing greenhouse gas emissions in our cities. This funding accelerates our agenda of promoting and investing in clean and sustainable businesses in India to achieve India’s climate objectives and Sustainable Development Goals,” said EverSource Capital Managing Director and CEO Dhanpal Jhaveri.
The company now conducts 1,400 e-bus projects in Maharashtra, Gujarat, Uttar Pradesh, New Delhi, and Madhya Pradesh, with over 600 e-buses operational in 21 cities. Furthermore, it intends to serve 5 million people each year on 56 intercity routes in India while improving passenger safety with increased security measures like cameras, tracking, and panic buttons linked to command controllers for fast reaction.
Sumit Mittal, COO & Director- Finance, GreenCell Mobility, said, “This financing package is more than an investment in GreenCell Mobility; it’s an investment in a greener, safer, and thus more sustainable future for India. We welcome it as an endorsement of our efforts to become a leading pan-India shared electric mobility player as part of India’s strong push for electrification of transportation. With GreenCell Express Private Limited (GEPL) offering, we bring to the intercity bus travel segment, electric buses that reinforce safe, seamless travel experience for new age Indian travelers, especially our women.”
GreenCell Mobility Private Limited (GreenCell), a platform of Green Growth Equity Fund, entirely owns GEPL (GGEF). GGEF is an Indian alternative investment fund managed by EverSource Finance with the purpose to mobilize institutional capital into the country’s green infrastructure.
India’s public transportation requirements are predicted to skyrocket as the country urbanizes. Road transportation accounted for 87% of all passenger journeys, 18% of total energy consumption, and 11.7% of greenhouse gas emissions in 2020.
“Decarbonization of public transport in India is essential for the country to reach its net-zero climate commitments, and it’s important to ensure safety and security of women passengers to make travel more inclusive,” said ADB Private Sector Operations Department Director General Suzanne Gaboury. “By providing safe transport for women, these intercity buses will enhance their ability to participate in economic and livelihood opportunities.”
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