Greencell Mobility, which is backed by EverSource Capital, plans to invest Rs 1500 crore in the next year to more than treble the number of electric buses it deploys on Indian roads.
GreenCell Mobility, an electric mobility as a service platform, will put an extra 1200 e-buses on the road for intra-city and inter-city travel, as well as set up the charging infrastructure needed to extend operations in the country.
GreenCell obtains electric buses from vendors on a contract manufacturing basis. GreenCell Mobility CEO Devendra Chawla told ET that the company’s goal is to develop a comprehensive ecosystem to expedite electrification in the public transportation sector.
“Not only do electric buses emit no tailpipe emissions, but they are also less expensive to operate.” Given the scarcity of supporting charging facilities, electric buses are mostly employed for intra-city travel.
We already operate e-buses on interstate routes under the NueGo brand and are building our network of superchargers to expand operations across the country,” Chawla explained.
GreenCell Mobility now has 800 e-buses on the road. By the conclusion of the current fiscal year, the company hopes to have 2000 e-buses on the road (including those supplied on a gross-cost-contract basis to state transportation undertakings) and 250 chargers in situ.
Chawla stated that the company has sufficient finances to fulfill its short-term growth strategy but will seek up to $ 200 million in additional funding for future expansion.“We have secured funding to put around 2000 electric buses on the road.”
“We have invested Rs 1500 crore so far and will invest a similar amount in the coming year,” Chawla said. The company now provides intercity services in 11 locations and expects to expand to another 4-5 cities in FY24. GreenCell Mobility intends to increase revenue by 2-3 times in the next 12-14 months with 2000 e-buses on the road. GreenCell expects to generate $75 million in revenue in FY24, and $125 million in annual recurring revenue when all 2000 buses are deployed.
GreenCell is an operating profitable firm, which is unusual for a consumer-tech start-up. GreenCell Mobility has acquired contracts for around 1500 electric buses across 25 cities in India in the B2G industry. The most recent arrangement was for 570 electric buses from the government of NCR Delhi’s transport department.
GreenCell provided the Maharashtra State Road Transport Corporation with 50 electric buses for intercity travel across Maharashtra, including Pune, Aurangabad, Kolhapur, Nasik, and Solapur. Chawla believes that with the government’s strong effort to transition to e-mobility, particularly in the public transport sector, the potential for growth is enormous.
He predicted that the country’s electric car industry will develop at a compound annual growth rate (CAGR) of 36% through 2030, adding, “We will see a sea change when it comes to electrification of mass transportation systems in the next 2-3 years.” Eversource Capital, India’s biggest climate impact investor, has endorsed Greencell Mobility.
Eversource Capital is a 50/50 joint venture between Everstone Group, one of Asia’s premier investment managers with assets in excess of US$7 billion across private equity, sustainability and climate impact, logistics, digital, and venture capital, and Lightsource bp, a global leader in solar energy project development and management. GreenCell has obtained a $ 55 million loan from the Asian Development Bank, Asian Infrastructure Investment Bank, and Clean Technology Fund Energy.
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