BasiGo on Wednesday announced that it has successfully closed a significant funding round, raising US$42 million to enhance its electric public transport initiatives.
This investment, which includes US$24 million in Series A equity funding and US$17.5 million in debt facilities, marks a pivotal moment for the electric bus firm and the region’s e-mobility sector.
Leading this funding round is Africa50, a pan-African infrastructure investment fund, reflecting the largest investment by an African fund in an e-mobility venture.
Alongside Africa50, several prominent investors participated, including Novastar Ventures, CFAO Kenya, Mobility54, SBI Investment, Trucks VC, Moxxie Ventures, and Susquehanna Foundation.
The equity investment facilitates a $10 million debt facility from the U.S. Development Finance Corporation (DFC) oriented toward scaling operations in Kenya. Additionally, a $7.5 million debt facility from British International Investment (BII) will support the expansion of BasiGo’s electric bus deployment in Rwanda.
During the announcement, Jit Bhattacharya, CEO of BasiGo, expressed enthusiasm about the investment’s implications for clean electric transport.
“Since our launch in 2021, we have aimed to revolutionize public transport in Africa. We are thrilled to have the support of Africa50 and other investors, which validates our business model and empowers us toward productivity and growth in the electric bus sector. With additional backing from BII, we can now deploy hundreds of emissions-free buses throughout East Africa,” Bhattacharya stated.
The newly acquired capital is dedicated to BasiGo’s ambitious goal of deploying 1,000 electric buses throughout East Africa over the next three years.
Specifically, in Kenya, these funds will enhance manufacturing capacity at BasiGo’s dedicated electric bus assembly plant located at Kenya Vehicle Manufacturers.
Furthermore, the investment will also support BasiGo’s Pay-As-You-Drive program, expanding it to new vehicle types and improving technology platforms such as Jani, aimed at increasing accessibility for passengers.
Raza Hasnani, Managing Director and Head of Infrastructure Investments at Africa50, emphasized the significance of this investment, stating that this is Africa50’s first foray into the e-mobility landscape, and we are proud to support BasiGo’s initiative, which contributes to greening public transport in Kenya and Rwanda.
BasiGo is strategically positioned to scale throughout East Africa, thanks to its exceptional engineering and operational expertise.
Notably, Steve Beck, Managing Partner at Novastar Ventures, emphasized the transformative potential of BasiGo’s work. “As early investors, we celebrate BasiGo’s milestones and witness how it is changing public transport dynamics in Africa,” Beck noted. “This funding reflects robust investor confidence in their sustainable transportation model and the growing customer demand.”
In December2023, BasiGo began operations in Rwanda, conducting pilot programs with six electric buses on key routes in Kigali and connecting nearby towns. The latest funding from BII is earmarked for launching commercial deliveries, building on over 300 reservations already received from Rwandan bus operators.
Seema Dhanani, BII’s Head of Office in Kenya, underscored BasiGo’s impact on sustainable economic growth. “We are excited to assist BasiGo’s expansion into Rwanda, a crucial move in electrifying local public transport to mitigate pollution and combat climate change,” she stated.
This round of funding not only strengthens BasiGo’s leadership in the evolving electric vehicle (EV) market but also positions the company as a trailblazer in sustainable transportation across sub-Saharan Africa. With a burgeoning market for electric mobility, BasiGo’s innovative solutions are set to address the pressing transportation and environmental challenges facing the region.