Kenya’s e-mobility company BasiGo has raised Ksh 798.6 million ($6.6 million) from eight lenders. This will help them make more electric buses that are built locally.
Mobility54, Trucks VC, Novastar Ventures, Moxxie Ventures, My Climate Journey (MCJ), Susquehanna Foundation, Keiki Capital, and OnCapital led the latest funding round, bringing the company’s total funding this year to Ksh 1.4 billion ($10.9 million). The company aims to deliver 1,000 electric buses by 2025.
With this latest round of funding, BasiGo’s total funding for 2022 has reached $10.9 million. This means that the company can start selling locally-made electric buses and charging stations using the Pay-As-You-Drive model of financing.
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BasiGo New Funding Round
BasiGo’s CEO, Jit Bhattacharya, is “thrilled” to have investors working in the auto industry and climate finance. 90% of Kenya’s power is renewable. Kenya’s transport industry uses imported petroleum fuels.
By making Kenya’s public transportation electric, we can cut greenhouse gas emissions, clean up the air in cities, and help bus owners with the rising fuel cost. With this additional investment, BasiGo can deliver state-of-the-art electric mobility to Africa.
Kenya’s public transport industry has approximately 100,000 privately owned matatus. With Citi Hoppa and East Shuttle in Nairobi, BasiGo’s electric buses have gone 110 000 km and carried 140 000 people.
Changing diesel buses to electric buses depends on BasiGo’s ability to use the idea and the latest technology. BasiGo has over 100 client reservations and has partnered with KCB Bank and Family Bank to offer up to 90% financing for electric bus purchases.
Mobility54 CEO Takeshi Watanabe believes in electric buses in Africa. We’re thrilled to work with BasiGo and help their development by using Toyota Tsusho and CFAO’s corporate assets.
High upfront costs limit electric bus adoption in developing nations. BasiGo’s Pay-As-You-Drive strategy lets owners buy an electric bus for the same price as a diesel bus. Operators pay BasiGo Kshs 20 ($0.17) per kilometer for battery leasing, charging at BasiGo stations, and servicing and maintenance. Nairobi bus operators spend an estimated Kshs 30–50 ($0.25–$42) per km for diesel fuel.
“At Trucks, we support transportation startups.” Trucks Venture Capital invested in BasiGo because their Pay-As-You-Drive technology had the potential to electrify and modernize Africa’s informal public transportation business.
In January, BasiGo will deliver 15 electric buses to Nairobi’s largest bus operators. BasiGo is installing high-power, DC fast-charging stations in Nairobi to support its expanded fleet. All 2023 buses will be assembled in Kenya, and the company plans to have 1,000 electric buses in Kenya by 2025.
Partner at Novastar Ventures Sapna Shah said, “BasiGo has grown by leaps and bounds since Novastar’s first investment in February 2022. This includes a hugely successful 6-month electric bus pilot with over 100 reservations from Nairobi’s leading public bus operators, local financing agreements with leading Kenyan banks, the commercial order and production of over 15 electric buses, and a stronger team.” We’re excited to continue working with BasiGo as they enter their next development phase and welcome Mobility54 and Trucks VC.
About BasiGo
BasiGo is a sub-Saharan e-mobility firm. The Nairobi, Kenya-based company sells, charges, and fixes electric buses for public service bus companies. BasiGo’s “Pay-As-You-Drive” financing concept makes electric buses competitively priced with diesel buses. BasiGo will pilot electric buses in Nairobi in 2022.
Trucks is the world’s largest seed-stage fund for companies that are making transportation safer, cleaner, and easier to use. Gatik, Universal Hydrogen, Bear Flag Robotics, Joby Aviation, and Turnsignl are some examples.
Mobility 54 Investment SAS is a company owned by TTC Group and CFAO SAS. It is a venture capital company. Mobility 54 invests in partners with innovative mobility services and technology in Africa. Mobility 54 is a “value-up” investment company that works with its partners in Africa to create synergies by using the TTC and CFAO groups’ Pan-Africa automotive network. TTC Group pursues MaaS and CASE initiatives in Africa through Mobility 54 based on its mid-term strategy of “Africa” and “Next Mobility” to help solve social mobility challenges in Africa.
Novastar Ventures has offices in Lagos, London, and Kenya. Novastar partners with bold entrepreneurs to build businesses in Africa that create value for the many, not the few, for people and the planet as a whole. Novastar’s 20 person team manages $200 million and is investing from its second fund. Novastar’s investors include private institutions, EDFIs, and family offices. Novastar entrepreneurs seek market- and sector-changing solutions. Novastar puts money into companies that give African consumers and producers access to essential goods and services and economic opportunities.