BasiGo raises $42m for public transport

October 23, 2024

From the newsletter

Kenyan electric bus startup BasiGo today announced it has received a $42 million investment, a combination of debt and equity, to fuel its electric bus ambitions in East Africa. This latest investment brings BasiGo's total capital raised to over $70 million, building on previous funding rounds. 

  • BasiGo raised $24 million in Series A equity funding and $17.5 million in debt financing.

  • Africa50 led the equity round, with participation from Novastar Ventures, CFAO Kenya, Mobility54, SBI Investment, Trucks VC, Moxxie Ventures, and Susquehanna Foundation.

  • Debt financing was secured from British International Investment ($10 million) and the U.S. Development Finance Corporation ($7.5 million).

More details

  • The investment from Africa50 marks one of the most significant investments by an African fund in an e-mobility company.

  • BasiGo CEO Jit Bhattacharya said, "We are thrilled to have Africa50, a premier African infrastructure investment fund, recognize the potential of our mission. The combined equity and debt investment in BasiGo validates our business model and enables us to focus on scale and profitability."

  • The $7.5 million debt facility from BII is specifically designed for scaling BasiGo's electric bus deployment in Rwanda.

  • Raza Hasnani, Managing Director and Head of Infrastructure Investments at Africa50 expressed confidence in the investment: "We are delighted to conclude Africa50's first investment in the e-mobility space to support the greening of the public transport sector in Kenya and Rwanda. 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 calibre of strategic and financial partners assembled by the founders."

  • In Kenya, the funds will be used to upscale production at the Kenyan Vehicle Manufacturers plant, support the expansion of BasiGo's innovative financing model (where bus operators pay per kilometre driven), and improve the electric bus booking app, Jani.

  • This investment will help BasiGo reach its ambitious goal of putting 1,000 electric buses on East African roads within the next three years. 

  • Since its inception in 2021, the company has sold 28 e-buses in Kenya and 6 in Rwanda and has received over 500 reservations in Kenya and 300 in Rwanda from bus operators.

  • This investment will serve to cement BasiGo's position as a trailblazer in Africa's electric vehicle revolution.

Our take

  • Being amongst the first entrants in the Kenyan and Rwandan e-bus markets gives BasiGo a strong understanding of the market and a first-mover advantage. But they are not alone in this race. Competitors like Roam in Kenya and IZI and Go Green Transport in Rwanda are also vying for a share of the same market.

  • IZI has shown the potential to rival BasiGo in Rwanda. Just four months after entering the market, they have deployed five e-buses and yesterday announced funding to double their e-bus fleet, although the amount is 189 times smaller than BasiGo's latest investment.

  • With this funding, BasiGo is well on its way to transforming public transport and showing the world that African innovation can lead the way in the global shift towards electric mobility.