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    HomeEcosystem NewsEASTERN AFRICABasiGo Secures $3 Million Funding from CFAO Group to Expand Green Transport...

    BasiGo Secures $3 Million Funding from CFAO Group to Expand Green Transport in Africa

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    BasiGo, the pioneering electric bus company operating in Kenya and Rwanda, has reached a significant milestone with the announcement of a USD 3 million equity investment from CFAO Group, Africa’s largest automotive distribution network owner. This investment marks a crucial step forward for BasiGo’s mission to revolutionize public transport in Africa through sustainable means.

    CFAO Group, a subsidiary of Toyota Tsusho Corporation, boasts a formidable presence across 40 African countries, excelling in mobility, renewable energy, consumer goods, and healthcare sectors. Their partnership with BasiGo signifies a joint commitment to establishing a comprehensive green value chain on the continent, ranging from renewable energy generation to providing clean, electric vehicles for urban transport in Africa’s burgeoning cities.

    Expressing delight at the collaboration, BasiGo extended a warm welcome to CFAO Group, emphasizing the shared vision of advancing eco-friendly mobility solutions across Africa. The infusion of capital from CFAO Group reinforces BasiGo’s capacity to deliver high-quality electric vehicles and services on a larger scale, instilling confidence in customers and partners alike.

    This investment comes on the heels of BasiGo’s recent financial achievements, including a USD 5 million debt funding secured from the British International Investment (BII) last December. The debt funding, a departure from equity financing, will be utilized by BasiGo to bolster its electric bus assembly operations in Kenya, with plans to roll out 100 buses in the country. Currently, BasiGo operates 19 electric buses in Nairobi, managed by various matatu companies.

    Jonathan Green, co-founder, and chief financial officer of BasiGo, highlighted the transformative potential of electrifying public transport in Kenya, leveraging the country’s abundant renewable energy resources. BasiGo’s innovative pay-as-you-drive model, offering electric buses to matatu companies, coupled with subscription-based battery lease coverage, aims to make eco-friendly transportation accessible and economically viable.

    Founded in 2021 by Jit Bhattacharya and Jonathan Green, BasiGo envisions deploying over 1,000 mass transit electric vehicles in Nairobi over the next five years. The company’s upcoming pilot program, set to launch next month, aligns with the Kenyan government’s commitment to green transport initiatives, particularly its Bus Rapid Transit (BRT) network in Nairobi, which exclusively operates green vehicles.

    BasiGo’s strategy involves in-house assembly of electric buses, sourcing components from China’s BYD Automotive, with configurations ranging from 25 to 36 seaters and a range of approximately 250 kilometers. This approach dovetails with the evolving landscape of the mass transit industry, which is gradually transitioning towards cleaner energy sources, as evidenced by the efforts of other players like Opibus.

    The collaboration between BasiGo and CFAO Group heralds a new chapter in Africa’s journey towards sustainable transportation solutions, underscoring the pivotal role of partnerships and investments in driving environmental progress on the continent. As BasiGo continues to expand its footprint and innovate within the electric vehicle space, the prospect of greener, more efficient urban transport becomes increasingly tangible for African cities.

    Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard.

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