A Kenyan firm called BasiGo, specialized in electric bus solutions, has secured $41.5 million in Series A funding to facilitate its operational expansion both domestically and throughout Africa. BasiGo offers advanced electric buses alongside comprehensive charging and maintenance services tailored for bus operators. By implementing a “pay-as-you-go” financing system, they ensure these vehicles remain affordable by separating battery and charging costs from the initial purchase price.
The capital obtained by BasiGo encompasses $24 million in Series A equity funding and $17.5 million in debt. Led by Africa50, the Series A equity round included co-investments from various entities like Novastar Ventures, CFAO Kenya, Mobility54, SBI Investment, Trucks VC, Moxxie Ventures, and Susquehanna Foundation.
This recent funding meets a crucial requirement to unlock a $10 million loan facility from the U.S. Development Finance Corporation (DFC) and additionally opens up a $7.5 million debt facility from British International Investment (BII) aimed at expanding BasiGo’s electric bus deployments in Rwanda, where the company initiated operations last year.
With the newly acquired funds, BasiGo aims to supply 1,000 electric buses across East Africa within the next three years. Furthermore, the investment will enable the company to diversify into newer vehicle types and enter fresh markets.
According to Jit Bhattacharya, CEO of BasiGo, since the inception of the company in 2021, their primary goal has been to establish a future for clean, electric public transportation in Africa. They express excitement about Africa50 recognizing the potential of their mission. The combination of equity and debt investments validates their business strategy, allowing them to concentrate on scalability and profitability. With BII’s backing to extend their e-bus model in Rwanda, BasiGo is poised to introduce numerous emission-free electric buses across Eastern Africa.
Raza Hasnani, managing director and head of infrastructure investments at Africa50, noted that concluding Africa50’s inaugural investment in the e-mobility sector supports the transition toward greener public transportation systems in Kenya and Rwanda. He believes BasiGo is ideally suited for further expansion due to its exceptional engineering capabilities, robust value propositions for transport operators, and the quality of partnerships established by its founders.
Moreover, Hasnani proudly highlighted that this transaction constitutes the largest investment thus far by an African fund in an e-mobility enterprise, underscoring their pride in fostering innovative initiatives driving environmentally friendly growth within the region.
The Editor
