GreenCell Mobility Bags Credit Of INR 307 Cr For UP Ebus Project

Shared electric mobility startup GreenCell Mobility has bagged green financing of INR 307 Cr (around $36.7 Mn) from Sumitomo Mitsui Banking Corporation (SMBC) for its electric bus project in Uttar Pradesh.

According to the terms of the agreement, SMBC has extended a long-term project finance facility to GreenCell Mobility for its 350 electric buses project in UP.

The project is expected to reduce around 2.35 Lakh tonnes of gross CO2 emissions over its contract lifespan, by facilitating the deployment of 9 metres fully built AC electric buses across 8 cities in UP, the company said in a statement.

Devndra Chawla, managing director and chief executive officer at GreenCell Mobility, “Our historic partnership with Sumitomo Mitsui Banking Corporation demonstrates GreenCell Mobility’s unwavering dedication towards sustainable mass mobility. GreenCell Mobility has become the first Indian company to secure green financing from global banks Standard Chartered and Sumitomo Mitsui Banking Corporation.”

Founded in 2019, GreenCell Mobility acquires e-buses via contract manufacturing basis from vendors. It then puts these buses on the roads for both inter-city and intra-city travel. 

As per Tofler, GreenCell Mobility’s revenue saw a 4.4X jump to INR 328.21 Cr in FY23 from INR 86.43 Cr in the previous fiscal year. However, the company’s net profit declined to INR 0.71 Cr in FY23 from INR 11.92 Cr in the previous financial year.

In July last year, the company secured debt funding of INR 3,000 Cr from REC Ltd (formerly Rural Electrification Corporation Limited). Back then, it said that the fresh funds would be used to acquire 3,000 electric buses, along with building a charging infrastructure network.

Prior to this in 2022, GreenCell Mobility-owned GreenCell Express signed a $55 Mn (INR 450.6 Cr) financing deal with the Asian Development Bank (ADB), the Asian Infrastructure Investment Bank (AIIB) and Clean Technology Fund (CTF). 

Meanwhile, in April, the new INR 500 Cr scheme to promote electric mobility in India came into force and will continue till the end of July. This came at a time when the Centre has reportedly granted a temporary four-month extension to the second phase of the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME-II) programme. The extension will entail an additional outlay of INR 500 Cr for the scheme. 

Indian EV startups offer services such as sustainable mobility, energy infrastructure, commercial mobility and battery management system, among others, to the general masses and enterprises. Besides, they are also helping reduce carbon emissions and offering a cheaper alternative to fossil fuels. As a result, the space has been gaining a lot of traction from the investors.

For instance, earlier this year it was reported that Blusmart was set to raise $25 Mn (around INR 208 Cr) in a fresh funding round from Switzerland-based impact investor responsAbility Investments AG in a mezzanine structure, including partial equity dilution and debt.

In February, electric vehicle manufacturer PURE EV (Power Using Renewable Energy) raised a funding of $8 Mn (INR 66.3 Cr) led by Bennett Coleman and Company Limited, Hindustan Times Media Ventures.