Zeno, a stealth-mode startup founded in 2022 by Tesla alumnus Michael Spencer, has raised $9.5 million in an oversubscribed seed round, positioning itself to transform Africa’s energy and transport landscape. The funding, led by Lowercarbon Capital and Toyota Ventures, with participation from 4DX Ventures, Active Impact, Advantedge, MCJ, and RedBlue, aims to accelerate the company’s ambitious plans to introduce swappable battery technology across East Africa.
Founded in 2022 by Michael Spencer, Zeno is setting its sights on the region’s ubiquitous motorbike taxis, locally known as bodabodas, which are a mainstay of East African cities like Nairobi and Kampala. These taxis offer affordable transport solutions, yet drivers face steep operational costs. Fuel, for instance, accounts for nearly half of their income — a far cry from the mere 2–3% that American commuters spend on gasoline. Spencer believes this is where Zeno’s innovation can step in to make a difference.
“We’re seeing a market ripe for change,” said Spencer, highlighting how the convergence of swappable battery technology and electric vehicles can bring meaningful shifts to emerging markets. “The Tesla master plan has more legs and more room to run with lower hurdles in emerging markets,” he said.
Batteries and Beyond: A New Power Model for Africa
The core innovation of Zeno is its swappable lithium-iron-phosphate (LFP) battery. Drivers can swap out depleted batteries at strategically located stations rather than waiting for them to recharge, similar to what Taiwanese startup Gogoro has pioneered in Southeast Asia. These batteries will initially power Zeno’s electric motorbikes, but Spencer and his team have grander ambitions.
The startup’s vision extends beyond electric vehicles. The swappable batteries could play a broader role in powering homes, especially in regions where power outages are frequent, or grid access is non-existent. Spencer explained that early testing revealed that many drivers wanted to use the batteries for more than just transportation, even attempting to modify them to run small businesses during power outages. “We saw people trying to hack the batteries to run flour mills and lights,” Spencer noted, reflecting the vast potential for this technology in daily African life.
To facilitate this expansion, Zeno is working with manufacturers in India to develop more durable motorbikes capable of withstanding East Africa’s rough terrain. Additionally, the startup is prototyping home battery docks and induction stoves that run on these swappable batteries. The long-term goal is for households to depend on Zeno batteries for a variety of energy needs, from cooking to powering electronics and even solar-powered home setups.
Zeno’s $9.5 million seed round reflects the growing confidence in Africa’s transition to green energy solutions. Venture capital interest in the region’s electric mobility market has surged in recent years, with firms betting on the scalability of sustainable technologies. Lowercarbon Capital, Toyota Ventures, and other backers see Zeno as a unique solution tailored to Africa’s needs. By targeting motorbike taxis — vital to East Africa’s urban transport infrastructure — the startup aims to slash fuel costs for drivers and contribute to cleaner cities.
The strategic investment also signals a shift towards energy accessibility. With over 600 million people in sub-Saharan Africa lacking reliable access to electricity, Zeno ’s swappable battery ecosystem could offer new solutions for powering homes and small businesses. By embedding internet connectivity in each system, Zeno will be able to monitor battery performance, anticipate demand, and offer flexible payment models that cater to the varying financial capacities of its customers.
Zeno plans to introduce its first electric motorbikes in early 2025 in Kenya, Uganda, and Tanzania, followed by India. Customers will have the option to lease or purchase the bikes, while subscribing to the battery service through a pay-per-use or subscription model. The upfront costs for a bike paired with a battery lease are expected to be lower than purchasing a gas-powered alternative, giving Zeno an edge in markets where cost is a primary concern.
The focus by Zeno on both transport and energy puts it at the heart of Africa’s green growth ambitions. The introduction of electric motorbikes and battery swap stations mirrors wider efforts across the continent to embrace sustainable transport. Startups like Ampersand Solar, Roam, and Zembo are all vying for a slice of Africa’s electric vehicle market, but Zeno’s holistic approach — integrating transport with household energy solutions — could set it apart.
For now, Zeno’s strategy is to undercut the operational costs of traditional gas-powered motorbikes while providing a sustainable alternative for drivers. By tapping into East Africa’s bodaboda network, the company hopes to scale quickly, building out a vast network of swap stations that will eventually support multiple forms of electric transport, from motorbikes to small cars.
As investors pour money into the region’s electric mobility market, Zeno’s $9.5 million seed round is seen as a significant step forward in Africa’s clean energy transition. With a foothold in East Africa, Zeno aims to be at the forefront of a new battery-powered revolution — one that not only promises greener cities but also greater access to reliable electricity for millions of people across the continent.