Australia's Macquarie Group has made a significant stride in India's electric vehicle (EV) transition. The conglomerate launched an EV financing platform, Vertelo, which will primarily focus on electrifying commercial vehicle fleets with a $1.5 billion investment, accounting for 95 percent of the total.
At the launch, Sandeep Gambhir, the chief executive of the newly launched Vertelo platform, outlined its comprehensive services. Vertelo will not only provide financing but also offer fleet management and charging infrastructure solutions, marking a significant step in India's EV ecosystem. The development was reported by Reuters.
The remaining 5 percent of the investment will go towards charging infrastructure and other requirements. Macquarie had previously said it would launch an EV financing platform along with the United Nations' Green Climate Fund (GCF) targeting initial investments on electric buses, shared fleets and charging infrastructure, but did not give a breakdown.
The Australian financial services conglomerate's focus on fleet electrification comes as EV sales are slowing down globally, with carmakers resorting to discounts to boost demand.
BP-backed startup BluSmart and Lithium operate a fleet of electric taxis in India, while Uber has also added electric cars in India by partnering with fleet operators.
Macquarie said in a statement that over the next three to five years, Vertelo will buy up to 2,000 electric cars from Indian EV market leader Tata Motors and up to 2,000 buses each from electric bus makers JBM Aut and Eka Mobility.
The Vertelo platform, which has already secured equity investments of $405 million from Macquarie and the GCF, is set to deploy $1.5 billion over the next 10 years. This long-term commitment to the Indian market by Macquarie Group provides reassurance about the stability and sustainability of the EV financing platform.
In December, Macquarie picked up a minority stake in India's fast-charging infrastructure provider, the Charge Zone.