BasiGo, the pioneering electric bus manufacturer in sub-Saharan Africa, has announced the successful close of a $42 million funding round, combining $24 million in Series A equity financing with $17.5 million in debt facilities. The infusion of capital is poised to accelerate the company’s expansion across East Africa and bolster the region’s transition to cleaner, electric public transportation.

The Series A equity round was led by Africa50, a pan-African infrastructure investment fund, marking a major milestone as the largest investment by an African fund in an electric mobility company. The round included participation from prominent global investors such as Novastar Ventures, CFAO Kenya, Mobility54, SBI Investment, Trucks VC, Moxxie Ventures, and the Susquehanna Foundation.

In addition to the equity financing, the debt component is supported by the U.S. Development Finance Corporation (DFC) and British International Investment (BII). The capital raised will be directed towards BasiGo’s ambitious goal of deploying 1,000 electric buses across East Africa over the next three years, with immediate plans for expansion in Kenya and Rwanda.

Strategic Funding Unlocks Key Debt Facilities

The Series A equity funding has unlocked a $10 million loan facility from DFC, earmarked for BasiGo’s operations in Kenya. It has also enabled a $7.5 million debt facility from BII to scale the company’s electric bus deployments in Rwanda, where BasiGo has seen rapid interest and demand.

The funds will be used to enhance manufacturing capacity at BasiGo’s electric bus assembly line at Kenya Vehicle Manufacturers, and to support the company’s innovative “Pay-As-You-Drive” model, which lowers the financial barrier to electric vehicle adoption for bus operators. BasiGo also aims to diversify into new vehicle types and expand its presence in other markets across the region.

“We are thrilled to have Africa50, one of Africa’s leading infrastructure investors, recognize the potential of our mission,” said Jit Bhattacharya, CEO of BasiGo. “This funding not only validates our business model but also gives us the financial foundation to expand our operations and drive profitability. With the additional support from BII, we’re well-positioned to deliver hundreds of emissions-free electric buses across East Africa.”

BasiGo has already made significant strides in its mission to electrify public transportation in the region. In December 2023, the company expanded to Rwanda, launching a pilot program with six electric buses operating on routes within Kigali and inter-city routes to neighboring towns. According to the company, it has already received over 300 reservations from Rwandan bus operators eager to adopt its electric buses.

In Kenya, BasiGo continues to ramp up its operations. The company’s Pay-As-You-Drive model has proven to be a game-changer, allowing bus operators to lease electric buses at competitive rates while reducing operational costs through lower fuel and maintenance expenses. The latest round of funding will further support the expansion of this model and solidify BasiGo’s position as a leader in electric mobility across the continent.

Africa50’s First E-Mobility Investment

For Africa50, this marks its first investment in the electric mobility sector, underlining its commitment to supporting green growth and sustainable infrastructure across the continent.

“We are delighted to conclude our first e-mobility investment by supporting the greening of public transport in Kenya and Rwanda,” said Raza Hasnani, Managing Director and Head of Infrastructure Investments at Africa50. “BasiGo’s strong value proposition and the caliber of its strategic and financial partners make it well-positioned to scale across East Africa and beyond. As the largest African fund investment in an e-mobility company, we are proud to back innovation that fosters green growth and development in the region.”

The participation of major international and regional investors in BasiGo’s funding round reflects growing confidence in the company’s business model and its potential to transform public transportation across Africa. Novastar Ventures, an early investor in BasiGo, expressed continued support for the company’s vision and progress.

“As an early investor in BasiGo, we are proud to see the team achieve another milestone on their journey to transforming Africa’s public transport,” said Steve Beck, Managing Partner at Novastar Ventures. “This funding round underscores the strong market demand for BasiGo’s electric bus solution, as well as the broader environmental and economic benefits it delivers. We look forward to supporting the company as it scales further.”

The capital raised will fuel BasiGo’s ambitious plans to expand its electric vehicle lineup and penetrate new markets, including additional East African countries. As the company continues to grow, it aims to lead the region’s transition to cleaner, more sustainable public transportation, while addressing critical challenges like urban air pollution and rising fuel costs.

With significant financial backing and growing demand from bus operators, BasiGo is well-positioned to become a key player in Africa’s emerging electric vehicle ecosystem.

BasiGo’s $42 million capital raise represents a pivotal moment for the electric mobility sector in Africa, signaling increasing investor interest in sustainable transportation solutions. As the company moves forward with its mission to deploy 1,000 electric buses in East Africa, it stands at the forefront of the continent’s clean energy transition, shaping the future of public transportation across the region.