EV funding slows in November

From the newsletter

The African e-mobility sector saw a slowdown in November, with three companies raising a total of $13.2 million. This figure is significantly lower than October's $43.2 million. It pales in comparison to the $23 million raised by eight companies during the same period last year. So far, the 2024 monthly average has been $25 million.

• The three deals were geographically concentrated in two regions, two in North Africa (Egypt) and one in West Africa (Senegal). The deals were diverse in type: one pre-seed, one venture round, and one debt. 

• Surprisingly, East Africa, a traditional hub for e-mobility innovation, was absent from the fundraising table prepared by Africa The Big Deal. Also, no series A or larger-scale investments were recorded this month, further indicating the early-stage nature of the sector's players in Africa.

The deals in detail

• Solarbox (Senegal) raised $1 million in a pre-seed round. The startup designs custom-made two- and three-wheelers and charging solutions, addressing a critical infrastructure gap in the region.

• SWVL (Egypt) secured $4.7 million in a venture round. The company, known for its app-based platform enabling customers to book fixed-rate rides on buses and vans, continues to expand its service offerings.

• Sylndr (Egypt) raised $7.5 million through debt funding. The platform, though not purely EV-focused, simplifies buying and selling used cars, a service that aligns with Egypt's broader push toward sustainable mobility.

• Egypt dominated the month, with two companies raising a combined $12.2 million. This aligns with Egypt’s recent e-mobility momentum. In November, Infinity Capital partnered with Recharged to locally produce and distribute home EV chargers. Additionally, global players like BAIC and Zeekr have announced plans to enter Egypt, reinforcing its growing importance in Africa’s EV ecosystem.

• Meanwhile, Senegal’s Solarbox stands out as the sole representative from West Africa. The country is also advancing its renewable energy initiatives with Eramet’s Grande Côte Mine installing 20 MW of solar power and 11 MWh of battery storage. These moves complement Senegal’s growing interest in e-mobility solutions.

Our take

• Funding in 2024 has shown significant month-to-month fluctuations, with fewer companies raising large sums. This could signal tighter venture capital conditions, reflecting a shift toward larger investments in more established players rather than distributing funds across a broader range of startups. Investors seem increasingly selective, directing their resources toward businesses with demonstrated viability or scalability.

• November's total of $13.2 million represents less than half of October's fundraising total. Nevertheless, these deals are among many this year that underscore consistent regional growth. The market has also begun drawing attention from African investors. The Solarbox deal saw participation from Mauritius-based Launch Africa and Senegal's Teranga Capital.

• While December 2023 saw a strong finish with multiple deals and higher amounts raised, the sluggish momentum in the second half of 2024 raises questions about whether this year will end on a similar high note.