Finnfund invests $15 million in Indian electric heavy vehicle company Transvolt Mobility
Finnfund, a Finnish development financier, is investing $15 million in Transvolt Mobility to support the company's expansion of electric heavy commercial vehicles in India. The investment aims to accelerate India's transition to cleaner transportation.
Finnfund, the Finnish development financier and impact investor, has announced a $15 million equity investment in Transvolt Mobility. The funding will support Transvolt's operations in deploying electric heavy commercial vehicles, including e-buses and e-trucks, across various sectors in India. This investment follows a similar equity investment from the International Finance Corporation (IFC).
The capital infusion is expected to enable Transvolt to scale its electric vehicle fleet to 3,500 heavy commercial vehicles within the next two to three years, creating approximately 8,500 jobs. The company aims to deploy a total of 8,000 heavy electric vehicles across India in the long term.
India has set ambitious targets for electrifying its transport sector, aiming to electrify 800,000 buses and replace 400,000 diesel trucks with electric alternatives. Investments like Finnfund's are crucial for supporting this transition and meeting the country's climate goals.
"We are happy to support Transvolt in its journey in contributing to the development of clean transportation," stated Helena Teppana, Associate Director at Finnfund. She highlighted the benefits of electrification for both climate and public health, particularly in reducing urban emissions. Teppana also noted Transvolt's commitment to increasing the employment of women.