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Macquarie’s $1.5 billion EV venture to focus on fleet solutions in India

Vertelo has received anchor investment from the Green Climate Fund which has committed to invest up to $US200 million

Macquarie’s $1.5 billion EV venture to focus on fleet solutions in India
[Source photo: Chetan Jha/Press Insider]

Macquarie Asset Management (MAM), part of Macquarie Group, has launched Vertelo, a new platform providing end-to-end solutions in fleet electrification in India with an investment of $1.5 billion over the next 10 years. 

The company said it aims to accelerate the transition of fleets to electric vehicles and build a robust EV ecosystem by offering bespoke solutions to customers including leasing and financing, charging infrastructure and energy solutions, fleet management services, and end-of-vehicle life management. 

Macquarie Group is one of Australia’s ten largest companies and has been active in India for over 19 years. The company claims to have invested over $2.5 billion in equity capital into Indian infrastructure.

The new platform has received anchor investment from the Green Climate Fund which has committed to invest up to $US200 million. Overall, Vertelo plans to invest $1.5 billion over 10 years to achieve a potential greenhouse gas emissions reduction of 9.5 metric tons of carbon dioxide equivalent (MTCO2e).

Macquarie Group’s plan aligns with the government’s target to achieve 40% electric buses and 70% electric commercial cars by 2030.

Vertelo has signed a long-term lease agreement with Chalo Mobility Pvt Ltd to supply 44 electric buses manufactured by JBM, a leading electric bus manufacturer in India, to operate in Mumbai. 

Further, Vertelo has signed agreements with multiple OEMs including JBM and Eka Mobility to buy up to 2,000 electric buses from each partner over the next three to five years and with Tata Motors to buy up to 2,000 electric cars over the next three years.

Abhishek Poddar, India country head of Macquarie Group, said: “The transition to electric vehicles will bring significant benefits to Indiaincreasing its energy independence and mitigating the impacts of climate change. Vertelo aims to play a key role in accelerating this transition by making it easy for its customers to realize the benefits of going electric immediately.”

Commenting on the venture, Henry Gonzalez, Green Climate Fund deputy executive director, said: “The platform launched today is a big moment for all involved. It has been designed to speed up the adoption of electric vehiclesbuses and commercial fleetsby providing affordable leasing and financing solutions. This will help bring costs down, so electric vehicles can be truly competitive, and people can breathe cleaner, safer air across the country.”

“This investment is the Green Climate Fund’s first private-sector transport program in the e-mobility sector, and we are excited to have provided $US200 million equity capital to support India’s e-mobility transition,” Gonzalez said. 

The GCF, with a portfolio of $13.9 billion, is the world’s largest dedicated climate fund. GCF’s mandate is to foster a paradigm shift towards low-emission, climate-resilient development pathways in developing countries.

Macquarie has appointed Sandeep Gambhir as the chief executive officer of Vertelo to lead the new business. Gambhir previously led the automotive leasing, mobility, and nonbank financial businesses for ORIX India for 11 years.

“Vertelo aims to become a larger ecosystem player in the EV mobility landscape through its unique and comprehensive offering that covers the entire lifecycle of the underlying assets including upfront capital solution, charging infrastructure, maintenance, and energy management, which helps it to partner with large OEMs, fleet operators, and other corporates, and accelerate fleet electrification in India,” Gambhir said. 

Vertelo is backed by the Green Climate Fund in partnership with Macquarie Asset Management, part of Macquarie Group. 

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