Everstone Capital-backed EV startup GreenCell Mobility has raised ₹330 Cr ($34.6 Mn) in an equity funding round led by Impact Fund Denmark to support the rollout of about 4,500 electric buses currently under deployment.
The Mumbai-based startup is eyeing expanding its fleet to more than 5,000 e-buses across 105 cities across India.
“Our focus is on executing our order book with rigour, strengthening service delivery and ensuring that the organisation keeps pace with the size and complexity of our operations. This equity investment gives us greater headroom to accelerate our plans while maintaining the standards of reliability, efficiency and customer experience that are fundamental to our business,” GreenCell Mobility managing director and chief executive Devndra Chawla said.
Founded in 2019, GreenCell Mobility focuses on deploying and operating electric buses for public transportation. It acquires electric buses via contract manufacturing arrangements with vendors and then deploys them for both intercity and intracity travel.
Backed by Eversource Capital, a joint venture between Everstone Capital and Lightsource, GreenCell primarily operates under the brand NueGo.
It claims to operate more than 1,200 electric buses in India, including 900 on intra-city routes, 300 under its NueGo brand for inter-city travel, and 50 for MSRTC. The startup also runs over 270 charging stations to support its fleet.
The startup previously raised $37 Mn from World Bank’s International Finance Corporation and also counts Eversource Capital, British International Investment and Tata Capital among its backers.
India’s electric bus segment has so far drawn strong interest from development finance institutions and lenders backing vehicle deployments under long-term public transport contracts. GreenCell’s latest round suggested that investors are also beginning to back the operating platform layer in the category, not just asset financing.
The investment highlights the role of institutional capital in expanding electric public transportation infrastructure in India. Large-scale electric bus deployments require funding not only for vehicles but also for the operational capabilities and charging infrastructure needed to support them.
Earlier in March, electric bus manufacturer PMI Electro Mobility, along with its electric bus platform Allfleet, has signed a definitive agreement with private equity giant KKR for an investment commitment of up to $310 Mn, to help scale the electric bus platform and focus on expanding its presence across India. PMI subsequently filed for an IPO via the confidential route last month.
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