Macquarie Asset Management has raised $405 million for Vertelo, a fleet electrification solutions platform in India, from a group of investors including Green Climate Fund (GCF), Macquarie Green Energy Transition Solutions Fund, Allianz Global Investors and Australian Ethical.

Macquarie Asset Management said the funding includes $205 million from institutional investors and the remaining $200 million in concessional capital from the Green Climate Fund (GCF), the anchor investor.

This partnership model, combining commercial and developmental funding, shows Macquarie’s ability to mobilize capital at scale to address critical climate challenges while delivering value to investors. It is Macquarie Asset Management’s first blended finance partnership with GCF.

Abhishek Poddar, managing director of Macquarie Asset Management, said this was the firm’s largest investment commitment in the electric vehicle (EV) space in Asia. “In just over a year, the MAM GI and Vertelo teams have built a strong operating platform in India. This reflects our global strategy of investing in growing businesses and emerging sectors within the energy transition domain,” he said.

Vertelo will provide financing solutions to accelerate India’s development of critical infrastructure and an ecosystem for a sustainable growth in the use of electric vehicles, said Henry Gonzalez, chief investment officer at the GCF.

Building EV ecosystem

Launched by MAM Green Investment in April 2024, Vertelo aims to accelerate fleet transitions to electric vehicles and build a robust ecosystem. The platform provides integrated fleet electrification solutions to customers, including leasing and financing, charging infrastructure and energy management, fleet management services and end-of-life asset management.

The platform has forged partnerships across the ecosystem, including those with leading original equipment manufacturers such as Eka Mobility, JBM, MG Motors, Switch Mobility, Tata Motors and Eicher Volvo.

Mint had earlier reported that Macquarie Asset Management had appointed EY to find investors for Vertelo.

Electric mobility has been a key focus of the Indian government in line with the ambitious target of net zero carbon emission by 2070. With a projected compound annual growth rate (CAGR) of 27%, India’s EV market is expected to reach $59 billion in annual sales by 2035.

The Macquarie Group has invested in the country’s infrastructure space since 2008, ploughing $2.5 billion in equity capital into energy transition, infrastructure and digital communications.

There is growing investor interest in the green mobility space, with the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme in place with a ₹10,900 crore allocation. Also, under the ₹57,613 crore PM-eBus Sewa, the government plans to add 10,000 electric buses through a public private partnership for city bus operations.