Encouraging mobility fundraising totals

From the newsletter

In the month of October, four companies in Africa's mobility sector raised new money. This compares favourably to the previous month when only two companies raised. The total amount raised last month was $43.2 million – as compared to $700,000 in September.

• One company raised twice. Two deals were in the bracket above $10 million, one between $1 million and $2 million, and two deals below $500,000. The previous month both deals sat in the two lower brackets. 

• The deal types varied last month. They break down into one general venture round, a Series A, two grants and a (big) slice of debt. In September there was only one venture round and one debt deal. 

The details: 

• Most of the money raised went to companies that had received cash previously. Only one of them raised their first capital. The previous month there were no first

• Here is a list of the five deals from Africa The Big Deal:

• BasiGo, the electric bus maker, raised $24 million in a Series A equity investment and $17.5 million in debt. 

• Rabbit Mobility, an Egypt-based micro-mobility sharing platform for short-distance transportation using electric scooters, raised $1.3 million in their first equity round. 

• IZI, a Rwandan e-mobility-as-a-service company, got $200,000 in grant money. 

• The company says it simplifies the process of transitioning bus fleets of any size to electric power, helping operators save up to 40% by switching.

• GoMetro, a South African fleet management software company, also raised $200,000 in grant money. 

• The company says it improves the operations of hundreds of fleets around the world by providing the building blocks for the rapid development of mobility applications. 

Our take: 

• Overall, this was a good month in terms of fundraising in Africa's mobility sector. The funding winter still continues in the global venture sector. But mobility is able to defy the naysayers.

• Of course, $43.2 million is a fraction of the venture capital required to build out the sector on the continent. This is in part a result of many companies still being at a very early stage. Few are yet to invest in manufacturing or assembly plants. Most are still focused on developing and adapting vehicles. 

• Maturity will have arrived in the sector when companies raise Series B, C and D to scale a proven business. For now, the number of deals is more important than the absolute amount of funds raised. For most startups in the sector, half a million dollars still goes a long way.