Ghanaian startup Kofa announced on April 30, 2025, that it has secured $8.1 million in pre-Series A funding to expand its AI-powered battery-swapping network across urban Africa.
The funding round includes $3.25 million in equity, $4.315 million in debt, and $590,000 in grants, with backing from E3 Capital, Injaro Investment Advisors, Shell Foundation, and the UK’s Transforming Energy Access platform.
Kofa’s swappable battery technology was introduced in 2022 as a clean, reliable energy source for motorcycles, small businesses, and homes. The system allows users to exchange a depleted battery for a fully charged one in under two minutes at a cost of about $1 per swap. Currently, Kofa facilitates over 200 swaps daily with a 99% charge success rate.
Kofa’s CEO and co-founder Erik Nygard explained the company’s approach: “We think trying to capture the whole value chain is the wrong play here. It ignores the reality on the ground. In Africa, scale happens through partnerships, not vertical integration.”
Kofa concentrates on energy delivery and software management, sourcing batteries from China and distributing vehicles through partners.
Kofa’s Al-powered battery swap network extends across Africa
With the new funding, Kofa plans to accelerate its expansion into three major cities across West and East Africa, particularly targeting Ghana and Kenya. The investment will support the deployment of new battery swap stations, the acquisition of additional battery stock, and the enhancement of Kofa’s AI-driven energy management platform.
Kofa’s proprietary platform leverages AI and IoT to track battery usage, predict demand, and optimize energy deployment, ensuring efficient management of millions of batteries as the network grows.
Erik Nygard commented on the company’s mission, stating, “This funding validates our vision to transform urban Africa’s energy landscape, and we are committed to building the ecosystem necessary to make this a reality. The shift to cleaner energy, for both domestic and commercial use, goes beyond sustainability—it drives real economic impact. But for this transition to succeed, several key elements must come together.”
The startup offers a simple and affordable power solution for gig workers on motorbikes and small business owners who use petrol generators. Through partnerships and technology, Kofa wants to make renewable energy the most affordable and practical option for urban Africa.
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