Business
Kenyan electric vehicle assembler BasiGo has obtained Sh 5.43 billion from a group of investors through a combination of equity and debt financing that will facilitate the delivery of 1,000 electric buses over the next three years.
The total funding comprises Sh3.1 billion ($24 million) in Series A equity and Sh2.26 billion ($17.5 million) in debt facilities provided by the British International Investment (BII) and the U.S. Development Finance Corporation (DFC). Spearheaded by Africa50, this equity round represents a notable investment in the e-mobility sector within Africa.
In a statement, BasiGo explained its intention to use the capital to enhance its manufacturing capabilities, specifically at its dedicated electric bus assembly line located at the Thika based Kenya Vehicle Manufacturers. Additionally, the company plans to expand its Pay-As-You-Drive service and upgrade its technology platform, Jani.
The funds will also support the company’s expansion into Rwanda, with part of the financing dedicated to increasing the deployment of e-buses in the area. Similarly, the investment builds on the Sh397 million funding the company received from CFAO Group earlier this year, indicating ongoing growth and strong confidence in the electric mobility sector.
Basi Go CEO Jit Bhattacharya and Dr. (Eng.) Joseph Siror, Kenya Power Managing Director and Chief Executive at a past function
Kenya has positioned itself as a frontrunner in African start-up funding, securing $437 million (Sh56.5 billion) in investments. This success is fuelled by a favourable business climate and strong investor interest in the country’s expanding start-ups.
BasiGo, founded in Kenya in 2021 by Jonathan Green and Jit Bhattacharya, secured $1 million in pre-seed funding to assemble electric buses in the country with the aim of operating them as commuter vehicles in Nairobi, commonly known as matatus. By March 2024, BasiGo’s electric buses had effectively transported over 4 million passengers, contributing to a reduction of 1,175 tonnes in greenhouse gas emissions.
The recent developments have occurred seven months after the Kenyan government introduced a national e-mobility draft policy designed to promote the local manufacturing and assembly of electric vehicles. BasiGo plans to utilize the funding to expand its fleet of electric buses from 119 to 1,000 in Kenya and Rwanda within the next three years.
The funding will facilitate the expansion of its e-bus assembly line and broaden the application of its pay-as-you-go financing model, enabling customers to lease BasiGo buses and mitigate high upfront costs. The E9 Kubwa model is priced at approximately KES 7.5 million ($58,000), while standard buses used for public transit in urban areas typically exceed KES 5 million ($37,000).
BasiGo aims to leverage Nairobi’s Matatu culture, which consists of small buses operated by Savings and Credit Co-operatives (SACCOs) that transport millions of passengers each day. To facilitate this, BasiGo has formed partnerships with various SACCOs, including Super Metro and Citi Shuttle, to integrate their buses into the transportation network across Kenya.