GreenCell to raise $55 million from ADB, AIIB and CTF

The Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB) and Clean Technology Fund (CTF) on Monday announced signing a $55 million financing package with GreenCell Express Private Limited (GEPL) to develop 255 electric battery-powered buses (e-buses) to serve five million people a year on 56 intercity routes in India. 

Additionally, grants worth $3,25,000 from the CTF and $5.2 million from Goldman Sachs’ and Bloomberg’s joint venture, Climate Innovation and Development Fund (CIDF) will partially finance the decarbonisation of 100 of the 255 e-buses by deploying solar, power-plus-battery energy storage systems. Overall, the project will reduce emissions of around 15,000 tonnes a year, GEPL said in a statement. 

“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. EverSource Capital manages Green Growth Equity Fund (GGEF). GGEF is an Indian alternative investment fund in India with a mandate to mobilise institutional capital into green infrastructure in India. GEPL is a wholly owned subsidiary of GreenCell Mobility (GreenCell), a platform company of Green Growth Equity Fund (GGEF).

Sumit Mittal, Chief Operating Officer and Director – Finance, GreenCell Mobility, said, “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 travellers, especially our women.”

India’s public transport needs are expected to grow rapidly as the country urbanises. In 2020, road transport accounted for 87 percent of all passenger trips, 18 percent of total energy consumption, and 11.7 percent of greenhouse gas emissions.

“Decarbonisation 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.”     

This project has 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. Gender lens investing is the intentional allocation of capital and alignment of investment strategies, processes and products, to achieve positive and tangible contributions against women's empowerment objectives and that has the potential to generate a financial return.  

Currently, GreenCell is implementing close to 1,400 E-Buses projects across states of Maharashtra, Gujarat, Uttar Pradesh, New Delhi, Madhya Pradesh, etc. of which 600+ E-buses are operational across 21 cities of India.