BII commits $33.5m to drive innovation and job creation in India’s EV industry

British International Investment (BII), the UK’s development finance institution and impact investor, has announced new commitments of $33.5 million to India’s electric vehicle (EV) sector which will help boost technological innovation and job creation in the EV ecosystem.

The commitments include $15 million in debt financing to Everest Fleet, a $15-million equity investment in TI Clean Mobility and $3.5 million in equity commitment in Vecmocon, according to the official statement.

BII’s investments underline its commitment to supporting and accelerating the energy transition. The investments span various aspects of the Indian EV adoption value chain.

With a fleet of over 18,500 cars, Everest Fleet will add up to 1,300 new electric vehicles to its existing 2,100 EVs with the proposed BII funding. This initiative is expected to generate employment opportunities for drivers in six major cities: Mumbai, Bengaluru, Delhi, Hyderabad, Kolkata, and Chennai.

TI Clean Mobility focuses on designing and manufacturing EVs, including three-wheelers, trucks, small commercial vehicles, and tractors. The DFI’s  co-investment through GEF’s South Asia Growth Fund III will be used for capital requirements to scale its manufacturing of low-carbon vehicles and to create inclusive jobs at scale.

Delhi-based Vecmocon manufactures critical components such as battery management systems, motor controllers, vehicle intelligence modules, and chargers besides providing data-driven insights to players in the EV ecosystem, including financiers and customers. The company has enabled over 60,000 cars on Indian roads. The funding from BII, EIF and Blume Ventures is expected to enhance the company’s R&D capabilities and expand into the commercial EV market.

“India’s ambitious drive towards sustainable mobility is an inspiring testament to its commitment to a greener future. British International Investment’s support for progressive and innovative companies in India’s Zero Emission Vehicles sector reflects the deep partnership between our nations to address shared global challenges like climate change,” said Sally Taylor, Director Development, Climate, Science and Tech, British High Commission, in the release.

In the past 12 months, BII has provided new financing to LoadShare, one of India’s largest last-mile logistics provider, to expand its electric two-wheeler offering.

The DFI has also invested in Euler Motors, a commercial EV manufacturer; Turno, an EV distribution and financing platform for small businesses and individuals; and Battery Smart, a battery-swapping network for commercial electric two- and three-wheelers, stated the release. BII is also supporting ChargeZone to build a network of over 10,000 charging stations by 2027.

In 2022, BII committed up to $250 million to a new passenger EV venture in partnership with Mahindra & Mahindra.

BII’s EV strategy is part of its broader commitment to invest up to $1 billion in climate-mitigating initiatives and innovation in green technologies in India.

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