Fortum partners with Finnfund to speed up charging infrastructure development and growth in India
To bolster growth for electric vehicles (EV) charging infrastructure in India, Fortum signed an agreement whereby Finnfund, a Finnish development financier and professional impact investor, will invest in a minority share of Fortum’s public charging point operator (CPO), Fortum Charge and Drive India Private Limited (FCDIPL). FCDIPL is a fast-growing e-mobility infrastructure provider, owning more than 70 public charging points at close to 40 locations in India, and partnerships with marquee business groups across the country. The transaction is expected to close in the fourth quarter of 2020.
The partnership will create a shared ownership structure and Finnfunds investment will accelerate FCDIPL’s growth plans in the charging infrastructure business and reaffirm its market leading position. FCDIPL will further continue to offer software as a service (SaaS) for operating electric vehicles (EV) charging infrastructure networks and customer interfaces to other CPOs.
Commenting on the announcement, Mr. Sanjay Aggarwal, Managing Director, Fortum India Private Limited said, “We at Fortum are committed towards accelerating India’s clean energy transition. India is among the fastest growing EV markets globally. Consequently, there is a significant growth in demand for public fast EV charging infrastructure in the country as mass adoption of EVs has picked up in the last two years. We are happy to collaborate with Finnfund, to grow the charging infrastructure business in India. For Fortum, this also proves the value of our business which we have built over the years and is testimony of our vision for a cleaner world. This partnership will further fuel this growth.”
”This is our first step into the e-mobility market and we are excited to be one of the forerunners in providing cleaner and cheaper travel alternatives in developing countries. We see this type of service as crucial for curbing pollution in big cities and we are happy to support Fortum in bolstering its efforts in setting up electric vehicle charging infrastructure in India. With the company’s significant local presence, backed by the great market potential of EVs in India, we look forward to this collaboration,” says Ms. Helena Teppana, Associate Director, Finnfund.
