British International Investment (BII), the UK-backed development finance body, announced investments worth $33.5 million (Rs 280 crore) into three companies in India’s electric vehicle sector.
These investments were to aid faster transition towards clean transport and combat air pollution, BII said in a statement on Tuesday
With these new three new investments, BII’s total commitment to India’s EV sector has gone up to $328 million.
“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,” BII’s statement said.
Out of total commitments made by BII, $15 million was through debt to fleet management company Everest Fleet. Everest Fleet will use the funds to expand its electric vehicle portfolio by adding up to 1,300 new EVs to the existing fleet of 2,100 EVs.
BII also made equity investments of $15 million in EV platform TI Clean Mobility through GEF Capital Partner’s South Asia Growth Fund III in May this year. The company will use funds for scaling manufacturing of its low carbon vehicles and create inclusive jobs.
BII also invested $3.5m equity in EV component designer and manufacturer Vecmocon, which is expected to enhance the company’s R&D and expansion into commercial EV market.
Some of BII’s investments in the EV segment earlier this year includes $5 million in last-mile logistics provider LoadShare, $14.4 million in EV manufacturer Euler Motors, $6 million in EV distribution and financing platform Turno, battery-swapping network provider Battery Smart, and $19 million in EV charging company ChargeZone.
BII had also invested $250 million in 2022 in a new passenger electric vehicle venture in partnership with Mahindra & Mahindra.
BII has committed about $130 million to Indian companies in 2023.
In an interview with VCCircle in November, Srini Nagarajan, the managing director and head of Asia at BII said that the DFI had a greater focus on exiting its investments last year and went slow in making new investments in India.
