BasiGo, a pioneering provider of electric bus solutions in sub-Saharan Africa, has successfully closed a significant funding round, raising a total of $42 million. This financing is composed of $24 million in Series A equity funding and $17.5 million in debt facilities. This capital infusion marks a crucial step for the company as it aims to electrify public transportation across East Africa.

Funding Details

The equity funding was spearheaded by Africa50, a prominent pan-African infrastructure investment fund, along with key contributions from Novastar Ventures, CFAO Kenya, Mobility54, SBI Investment, Trucks VC, Moxxie Ventures, and the Susquehanna Foundation. This investment is notable not only for its size but also as the most substantial commitment from an African fund in the e-mobility sector. The successful completion of this equity round unlocks a $10 million loan facility from the U.S. Development Finance Corporation (DFC) and a new $7.5 million debt facility from British International Investment (BII) to further BasiGo's electric bus deployments in Rwanda.

Strategic Objectives

BasiGo plans to utilize the new capital primarily to deliver 1,000 electric buses across East Africa within the next three years. A portion of the funding will be directed towards enhancing manufacturing capabilities at BasiGo's electric bus assembly line at Kenya Vehicle Manufacturers. Additionally, the company aims to expand its innovative Pay-As-You-Drive model to include new vehicle types and improve technology platforms such as Jani, which enhance the passenger experience.

Jit Bhattacharya, CEO of BasiGo, expressed enthusiasm about the funding, stating, "Since we founded BasiGo in 2021, our mission has been to create the future of clean, electric public transport in Africa. We are thrilled to have Africa50, a premier African infrastructure investment fund, recognize the potential of our mission. This combined equity and debt investment validates our business model and allows us to focus on scaling and profitability."

Growth and Expansion Plans

The infusion of capital also aligns with BasiGo's strategy to scale operations beyond Kenya. In December 2023, the company commenced operations in Rwanda, where it currently operates six pilot electric buses on routes in Kigali and inter-city connections to nearby towns. With over 300 reservations from bus operators in Rwanda, the new funding will enable BasiGo to commence commercial deliveries of electric buses, further solidifying its presence in the Rwandan market.

Raza Hasnani, Managing Director and Head of Infrastructure Investments at Africa50, emphasized the significance of this investment in promoting sustainability, stating, "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 caliber of strategic and financial partners assembled by the founders."

Environmental Impact

BasiGo's efforts are timely as urban areas in East Africa grapple with increasing pollution levels and the pressing need for sustainable public transportation solutions. By introducing electric buses, BasiGo aims to significantly reduce emissions and promote cleaner air quality in the regions it serves. The company's expansion into Rwanda, supported by the new debt facility from BII, is a strategic move to contribute to the country's ambitions for sustainable transportation and environmental conservation.

Seema Dhanani, Head of Office, Kenya and Coverage Director for East Africa at BII, remarked, "We are delighted to support BasiGo as it expands into Rwanda. This marks a significant step in electrifying the local public transport sector, reducing pollution, and combating climate change impacts. This aligns with our priority of supporting e-mobility to foster sustainable economic growth."

The $42 million funding secured by BasiGo underscores a growing confidence in the electric mobility sector within Africa. As the company prepares to roll out additional electric buses across East Africa, it positions itself as a leader in the evolving landscape of sustainable public transportation. With a clear mission and substantial backing, BasiGo is poised to make a lasting impact on the region’s transit systems while promoting environmental sustainability.