Electric bus startup, BasiGo, has secured a US$17.5 million loan and US$24 million in equity funding from various investors to deploy over 1,000 electric buses across East Africa in the next three years.
- The funding round was led by Africa50, the British International Investment (BII) which provided a US$7.5 million loan, and the US Development Finance Corporation (DFC) which loaned out US$10 million.
- Other investors included Novastar Ventures, CFAO Kenya, SBI Investments, Moxxie Ventures, Trucks VC, Susquehanna foundation, and Mobility54
- The startup, which was founded in 2021, will focus its activities in Rwanda, a market it intends to upscale its electric bus operations.
“We are thrilled to have Africa50, a premier African infrastructure investment fund, recognize the potential of our mission. This investment validates our business model and enables BasiGo to focus om scale and profitability,” said the CEO of BasiGo, Jit Bhattacharya.
BasiGo will also support its assembly line, ensuring that enough electric buses are produced to accommodate upcoming demand. The startup also introduced a Pay-As-You-Go model for its customers to allow them lease the buses to operate without facing high upfront costs. The raised funds will further strengthen the company’s capability to handle the model.
“We believe BasiGo is well-positioned to scale in East Africa and beyond. As the largest investment to date by an African fund in an e-mobility company, we are proud to support innovation that drives green growth and development in the region,” said the Managing Director of Africa50, Raza Hasnani.
BasiGo was founded by Jonathan Green and Jit Bhattacharya, raising US$1 million in its pre-seed round. Over three years, the startup has managed to raise immense amounts of money from different investors, many of whom are climate-based funders. With competition mounting in the region’s e-mobility sector, more and more capital-providers are investing in startups’ assembly lines and battery swap stations.
“As an early investor in BasiGo, we are immensely proud of the team’s continued progress towards transforming the public bus transport sector in Africa, delivering improved experience for commuters and substantial environmental benefits,” said Managing Partner at Novastar Ventures, Steve Beck.
