Grace Ashiru
BasiGo’s capital raise includes $24 million in Series A equity funding and $17.5 million in debt.
The Series A equity round was led by Africa50, with co-investment from Novastar Ventures, CFAO Kenya, Mobility54, SBI Investment, Trucks VC, Moxxie Ventures, and the Susquehanna Foundation.
The Series A funding fulfills a crucial requirement for unlocking a $10 million loan facility from the U.S. Development Finance Corporation (DFC) for BasiGo Kenya. It also opens access to an additional $7.5 million debt facility from British International Investment (BII) to expand BasiGo’s E-bus deployments in Rwanda.
The capital will be used to support BasiGo’s goal of delivering 1,000 electric buses in East Africa over the next three years, while also allowing the company to expand into new vehicle types and markets. BasiGo, the leading provider of electric bus solutions in sub-Saharan Africa, has announced the successful closing of $42 million in new capital today.
The funding round comprises $24 million in Series A equity funding and $17.5 million in debt facilities from British International Investment (BII) and the U.S. Development Finance Corporation (DFC). The equity round is led by Africa50, the pan-African infrastructure investor and asset manager, representing the largest investment from an African fund in an e-mobility company to date.
The equity round includes co-investments from Novastar Ventures, CFAO Kenya, Mobility54, SBI Investment, Trucks VC, Moxxie Ventures, and the Susquehanna Foundation. The Series A equity round unlocks a $10 million debt facility from DFC for BasiGo Kenya, along with a new $7.5 million debt facility from BII, specifically aimed at scaling BasiGo’s E-bus deployment in Rwanda.
Jit Bhattacharya, CEO of BasiGo, commented: “Since founding BasiGo in 2021, our mission has been to shape the future of clean, electric public transport in Africa. We are thrilled that Africa50, a leading African infrastructure investment fund, recognizes the potential of our mission. The combined equity and debt investment validates our business model and allows BasiGo to focus on scaling and profitability. With BII’s support to expand our E-bus model in Rwanda, we are poised to deliver hundreds of modern, emissions-free electric buses across East Africa.”
The capital raised by BasiGo will be directed toward the company’s primary goal of delivering 1,000 electric buses in East Africa over the next three years. In Kenya, the funds will be used to boost manufacturing capacity at BasiGo’s dedicated E-Bus assembly line at Kenya Vehicle Manufacturers. Additionally, the investment will support the expansion of BasiGo’s Pay-As-You-Drive offering to new vehicle types and enhance the company’s technology platforms, such as Jani, which make electric buses more accessible and convenient for passengers.
“We are thrilled to finalize Africa50’s first investment in the e-mobility sector to support the greening of public transport in Kenya and Rwanda. We believe BasiGo is well-positioned for growth in East Africa and beyond, given its world-class engineering and operations teams, strong value proposition for transport operators, and the caliber of strategic and financial partners brought together by the founders,” said Raza Hasnani, Managing Director and Head of Infrastructure Investments at Africa50. “As the largest investment to date by an African fund in an e-mobility company, we are proud to support innovation that fosters green growth and development in the region,” Mr. Hasnani added.
Steve Beck, Managing Partner at Novastar Ventures, stated: “As an early investor in BasiGo, we are immensely proud of the team’s ongoing efforts to transform the public bus transport sector in Africa, enhancing the experience for commuters and providing significant environmental benefits. This latest funding round demonstrates strong investor confidence in BasiGo’s business model, value proposition, and customer demand as it expands its operations and leads the way in sustainable transportation in Africa. We are excited about this milestone and look forward to continuing our partnership with BasiGo through the next phase of growth and beyond.”
In December 2023, BasiGo expanded its operations to Rwanda, where it is currently running six pilot electric buses on routes within Kigali and inter-city routes to nearby towns. The new debt facility from BII will be utilized for launching commercial deliveries of E-Buses in Rwanda, where BasiGo has already received over 300 reservations from bus operators.
Seema Dhanani, Head of Office, Kenya, and Coverage Director for East Africa at BII, stated: “We are excited to support BasiGo as it expands into Rwanda. This represents a significant advancement in electrifying the local public transport sector, reducing pollution, and addressing climate change impacts. This aligns with our priority of promoting e-mobility to foster sustainable economic growth.”
The total capital raised is one of the most substantial investments in electric mobility in Africa. This investment propels BasiGo’s growth trajectory and solidifies its position as a leader in the evolving EV landscape of Sub-Saharan Africa.
