GreenCell Mobility Bags INR 3,000 Cr Debt Funding From REC To Acquire 3,000 E-Buses

Shared electric mobility startup GreenCell Mobility on Monday (July 24) said that it has secured a debt funding of INR 3,000 Cr from state-owned REC Ltd (formerly Rural Electrification Corporation Limited). 

The startup will use the fresh funds to acquire 3,000 electric buses and establish a robust charging infrastructure network. The capital will also be deployed to support projects for developing alternative fuel technology buses and other battery energy storage initiatives.

The startup signed a Memorandum of Understanding (MoU) with REC for the debt funding. As per the company, the MoU will not only be applicable for existing projects but also for any future projects undertaken by GreenCell Mobility.

Under the terms of the agreement, all subsidiaries of the startup, involved in the area of electric mass mobility as a service, will be eligible to avail financial assistance from the public sector enterprise for all related activities over the next five years, up to March 2028.

“We are extremely delighted to join forces with REC Limited… With REC Limited’s financial backing, our vision of revolutionising urban mobility, minimising carbon emissions, and improving the well-being of our communities comes one step closer to reality. We pledge to conscientiously and efficiently employ these funds to build a greener, cleaner, and more interconnected future,” GreenCell Mobility MD and CEO Devndra Chawla said.

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. It also plans to build a platform to provide electric Mobility-as-a-Service (eMaaS). 

In November last year, the startup secured $55 Mn in debt funding from Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB)  and Clean Technology Funds (CTF) for 255 electric buses. 

GreenCell Mobility plans to invest INR 1,500 Cr to double its electric buses in India over the next year. It also plans to add 1,200 more such buses for both intra and inter-city travel, and set up necessary charging infrastructure across the country. 

Currently, GreenCell has 850 e-buses on the roads, and aims to reach the 2,000 mark by the end of this financial year. Currently, it provides services in 11 cities at intercity level and plans to add 4-5 more cities in FY24. 

The startup operates within the larger EV space which has seen big growth in the past few years. With further push from the government, the EV market is slated to grow to a size of $152 Bn by 2027, as per a report.