Macquarie, Australia’s diversified financial group, has introduced its electric vehicle financing and comprehensive solutions platform, Vertelo, in India. With a $1.5 billion investment, the platform will electrify bus and car fleets, providing funding, fleet management, and charging solutions.
Abhishek Poddar, India Country Head at Macquarie Group, said about 5% of the investment targets charging infrastructure. Additionally, the company will allocate a significant portion of the investment towards electrifying commercial vehicles.
Poddar mentioned their intention to seek a non-banking financial company (NBFC) license from the Reserve Bank of India (RBI). On the other hand, the NBFC’s primary function will be to offer loans for EV financing.
The company aids India’s goal of electrifying 40% of buses and 70% of commercial cars by 2030.
Over 10 years, Vertelo aims to invest $1.5 billion to potentially reduce greenhouse gas emissions by 9.5 metric tonnes of carbon dioxide equivalent (MtCO2e). Moreover, Vertelo and Chalo Mobility Pvt Ltd have inked a long-term lease deal to deploy 44 electric buses manufactured by JBM in Mumbai.
In addition, Vertelo has partnered with several OEMs to address rising customer demand. Over the next three to five years, JBM and Eka Mobility will acquire up to 2,000 e-buses from each partner. Also, Tata Motors aims to purchase up to 2,000 EVs within the next three years.
“The transition to electric vehicles will bring significant benefits to India – increasing 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 realise the benefits of going electric immediately,” Poddar said.
The Green Climate Fund has committed up to $200 million in anchor investment for the new platform.
Henry Gonzalez, Green Climate Fund Deputy Executive Director, said, “The platform launched today is a big moment for all involved. It is to speed up the adoption of e-buses and commercial fleets by providing affordable leasing and financing solutions. It will help bring costs down so EVs can be competitive, and people can breathe cleaner, safer air across the country. This investment is the Green Climate Fund’s first private-sector transport programme in the e-mobility sector. We are excited to have provided $US200 million equity capital to support India’s e-mobility transition.”
Sandeep Gambhir will serve as the CEO, leading the operations of the new business. Previously, he served as the head of ORIX India’s automotive leasing, mobility, and nonbank financial units for 11 years.
Gambhir stated that Vertelo’s goal is to expand its presence as a significant player in the EV mobility sector. Its comprehensive services cover the lifecycle of the assets, such as charging infrastructure, maintenance, and energy management. Thus, this approach facilitates partnerships with large OEMs, fleet operators, and other corporates.
Vertelo receives endorsement from the Green Climate Fund in collaboration with Macquarie Asset Management, a division of Macquarie Group.
As one of Australia’s top ten companies, Macquarie Group has been operational in India for more than 19 years. Also, with over $2.5 billion invested in Indian infrastructure, it targets net zero emissions for its portfolio companies by 2040.
