BasiGo, a Nairobi-based electric mobility company, has successfully closed a substantial $42 million funding round to drive its mission of electrifying public transport across sub-Saharan Africa. This latest funding injection, which includes $24 million in Series A equity and $17.5 million in debt financing, aims to accelerate BasiGo’s electric bus deployments and expand its influence in the region. This milestone highlights BasiGo’s growing importance as a major player in Africa’s transition to sustainable transport solutions.
Breaking Down the $42 Million Funding
The $42 million capital raised is composed of $24 million in Series A equity funding, spearheaded by Africa50, a pan-African infrastructure investment platform. Africa50’s involvement represents the largest single investment by an African fund into an e-mobility company to date. The equity round also attracted investments from Novastar Ventures, CFAO Kenya, Mobility54, SBI Investment, Trucks VC, Moxxie Ventures, and Susquehanna Foundation, reinforcing investor confidence in BasiGo’s approach to electric public transport in Africa.
In addition to the equity financing, the funding round includes $17.5 million in debt facilities. The British International Investment (BII) and U.S. Development Finance Corporation (DFC) have extended these debt facilities, unlocking a $10 million loan facility from DFC for BasiGo Kenya and an additional $7.5 million from BII to support electric bus rollouts in Rwanda. This financial structure provides BasiGo with the resources to both deepen its impact in Kenya and expand its footprint to Rwanda and beyond.
Enabling BasiGo’s Ambitious Goals in East Africa
Founded in 2021, BasiGo set out to revolutionize public transport in Africa by making electric buses affordable and accessible to operators. Its flagship offering, the Pay-As-You-Drive financing model, allows public service bus operators to adopt electric buses without the traditional financial burden of full ownership costs upfront. With this funding, BasiGo aims to scale its operations and reach a target of deploying 1,000 electric buses across East Africa over the next three years.
Jit Bhattacharya, CEO of BasiGo, expressed excitement about the momentum behind their mission. “Since we founded BasiGo, our mission has been to create the future of clean, electric public transport in Africa. The combined equity and debt investment into BasiGo validates our business model and enables us to focus on scale and profitability,” Bhattacharya said. “With BII’s support to expand our E-bus model in Rwanda, we are ready to deliver hundreds of modern, emissions-free electric buses across East Africa.”
Scaling Operations and Expanding Market Reach
The capital raised will allow BasiGo to enhance its manufacturing capacity at its E-bus assembly line within Kenya Vehicle Manufacturers (KVM). This investment is set to drive the production of electric buses and expand BasiGo’s Pay-As-You-Drive model to include new vehicle types, broadening the options available to public transport operators. The company also aims to bolster its technology platforms, including its Jani platform, which streamlines electric bus accessibility and convenience for both operators and passengers.
Africa50’s Managing Director and Head of Infrastructure Investments, Raza Hasnani, underscored the significance of the investment, stating, “We believe BasiGo is well-positioned to scale in East Africa and beyond given its world-class engineering and operations teams, strong value proposition to transport operators, and the caliber of strategic and financial partners assembled by the founders.” Africa50’s investment marks its first in the e-mobility space, highlighting the fund’s commitment to supporting sustainable infrastructure in Africa.
Expanding into Rwanda and Future Market Opportunities
BasiGo’s operations in Rwanda have already demonstrated promise. In December 2023, the company began piloting six electric buses on various routes within Kigali and nearby towns. These pilot operations have been met with considerable interest, leading to over 300 reservations from Rwandan bus operators eager to join the electric transition. The newly unlocked $7.5 million debt facility from BII will support the launch of full-scale commercial electric bus operations in Rwanda, further solidifying BasiGo’s role as a pioneer in African e-mobility.
Steve Beck, Managing Partner at Novastar Ventures and an early investor in BasiGo, highlighted the impact of the company’s progress, stating, “As an early investor in BasiGo, we are immensely proud of the team’s continued progress towards transforming the public bus transport sector in Africa. This latest funding round is a testament to the strong investor confidence in BasiGo’s business model, value proposition, and customer demand.”
Driving Green Growth Through Strategic Partnerships
The strategic partnerships supporting BasiGo’s funding round showcase a diverse group of stakeholders committed to sustainable transport solutions in Africa. Africa50, with 35 shareholders including 32 African countries and key financial institutions like the African Development Bank, catalyzes both public and private capital for infrastructure development across the continent. Their investment in BasiGo is a major step in achieving their mission of green growth and climate impact.
British International Investment, the UK’s development finance institution, shares similar goals, with a mandate focused on fostering productive, sustainable, and inclusive economies. By supporting BasiGo’s expansion in Rwanda, BII is advancing its commitment to climate finance, as it aims for 30% of its commitments from 2022 to 2026 to support climate initiatives. Seema Dhanani, Head of Office for Kenya and East Africa at BII, emphasized the alignment with BasiGo’s mission, saying, “This marks a significant step in electrifying the local public transport sector, reducing pollution, and combating climate change impacts.”
A Vision for Clean Transport Across Africa
The $42 million investment underscores the rapid growth and adoption of electric mobility in Africa, a region with immense potential for sustainable solutions in the public transport sector. BasiGo’s innovative Pay-As-You-Drive model is instrumental in this transition, enabling operators to bypass the high upfront costs typically associated with electric vehicles. As a result, operators can reap the economic benefits of electric buses, including lower operational costs and improved environmental sustainability, without prohibitive financial constraints.
The investment also positions BasiGo to play a pivotal role in Africa’s electric vehicle (EV) landscape, with a focus on scaling up infrastructure, reducing carbon emissions, and fostering inclusive economic growth. As public and private sector entities increasingly back green mobility, BasiGo’s model offers a replicable framework that can be adapted across other African markets.
A New Chapter for Electric Mobility in Africa
With funding secured, BasiGo is well-positioned to lead the electric vehicle revolution in East Africa, aiming to set a new standard for clean and affordable public transport across the region. As BasiGo gears up to deploy 1,000 electric buses in the next three years and expand into new markets and vehicle types, this round of financing marks a significant milestone, not only for the company but also for the entire African transport sector.
Through this monumental investment, BasiGo and its partners are poised to create lasting impact by transforming African public transport with state-of-the-art electric buses, pioneering a cleaner and more sustainable future for the continent.
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