GreenCell bags $55 million for developing electric inter-city bus services in India
Electric mass-mobility startup GreenCell Mobility has recently announced a series of fresh financial support and grants from DFIs and investors for its inter-city electric bus transportation plan in India.
The Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB) and Clean Technology Fund (CTF) have signed a $55 million financing package with GreenCell Express Private Limited (GEPL) to develop 255 e-buses on 56 key intercity routes in India.
Additionally, grants worth $325,000 from the CTF, and $5.2 million from Goldman Sach's and Bloomberg's the Climate Innovation and Development Fund (CIDF) has been announced.
CIDF grant will partially finance the decarbonization of 100 of the 255 e-buses by deploying solar power-plus-battery energy storage systems, according to the company. Overall, the project estimates to reduce emissions of around 15,000 tons a year.
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".
He further added, "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 travellers, especially our women".
"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 Suzanne Gaboury, ADB Private Sector Operations Department Director General. "By providing safe transport for women, these intercity buses will enhance their ability to participate in economic and livelihood opportunities."
This e-bus project has been qualified for a '2x gender' financing rating, a challenge launched at the G7 summit in 2018 to encourage gender lens investing among development finance institutions.
GEPL is a wholly owned subsidiary of GreenCell Mobility Private Limited (GreenCell), a platform company of Green Growth Equity Fund (GGEF). GGEF is an Indian alternative investment fund in India, managed by EverSource Capital, with a mandate to mobilize institutional capital into green infrastructure in India.
"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.