Eversource Capital’s electric bus arm GreenCell Mobility has secured USD 89 million in mezzanine financing from International Finance Corporation, British International Investment and Tata Capital, providing fresh capital to support the next phase of its electric bus rollout.

Mezzanine financing, which blends elements of debt and equity, is increasingly being used by infrastructure and clean mobility companies to fund growth while avoiding immediate and significant equity dilution.

For GreenCell Mobility, the capital will be deployed to expand its electric bus fleet to 3,700 vehicles, up from more than 1,200 buses currently under management.

The planned expansion includes buses secured through competitive auctions for intra-city routes across Delhi, Madhya Pradesh, Andhra Pradesh, Bihar and the Union Territory of Puducherry. These tenders were conducted under the National E-Bus Program and the PM Seva E-Mobility initiative, both of which are designed to accelerate the adoption of electric public transport across Indian cities.

The latest funding round comes months after IFC announced a USD 37 million mezzanine investment in GreenCell Mobility, alongside a separate USD 100 million commitment to JBM ECOLIFE to support the deployment of electric buses and charging infrastructure across 39 municipalities.

“Through this funding round for GreenCell Mobility, we are deepening our partnership with IFC, BII and Tata Capital, leaders in sustainable investments,” said Dhanpal Jhaveri, Vice Chairman of Everstone Group and CEO of Eversource Capital. “The transaction exemplifies the catalytic role that private, development and institutional capital can play in accelerating India’s clean transport revolution,” he added.

Investor activity in the electric bus segment has gathered pace in recent times. EKA Mobility raised INR 500 crore in October last year from the National Investment and Infrastructure Fund managed India Japan Fund, and secured an additional INR 200 crore in June last year from private equity firm ENAM Holdings. JBM Auto has also raised capital to support its electric mobility initiatives.

“Electrifying buses is central to India’s urban transformation agenda, and our mezzanine investment in GreenCell will accelerate sustainable public transport,” said Katherine Koh, Regional Industry Manager for Infrastructure and Natural Resources, Asia and Pacific at IFC.

GreenCell Mobility competes with Olectra Greentech, JBM ECOLIFE, EKA Mobility, Switch Mobility India, Tata Motors Electric and Ashok Leyland.