Ghanaian and UK-based energy technology company, Kofa Holdings, has secured a significant seed stage funding to drive its mission of providing clean energy access to 10 million customers across Africa and offsetting 10 million tonnes of CO2 annually. This funding round was led by Mercy Corps Ventures, Shell Foundation, UK’s FCDO (Foreign, Commonwealth & Development Office), and Wangara Green Ventures, in addition to several prominent angel investors.
Kofa Holdings aims to address the challenges of energy affordability and accessibility, particularly in mobility and logistics, which pose significant barriers to scaling local businesses. With escalating oil and gas prices and persistent blackouts, the need for resilient energy systems for consumers and small enterprises has become critical.
The funding will empower Kofa to expedite its expansion into multiple cities across Ghana, leveraging its improved second-generation products, which is in line with company’s vision of creating an affordable, sustainable, and customer-centric electricity network based on swappable batteries.
Africa is home to approximately 30 million moto-taxis, spending a staggering $100 billion annually on fuel, amounting to $11 per day per bike. The potential to transition these riders to electric bikes presents a tremendous opportunity for Kofa. The company’s goal is to provide customers with clean and affordable energy solutions through a portable battery network capable of powering various use cases. Kofa’s innovative battery-as-a-service model will drive the shift of mobility and generators away from fossil fuels, resulting in a substantial reduction in CO2 and greenhouse gas emissions. Fossil fuels are major contributors to the greenhouse effect, accounting for over 75% of global greenhouse gas emissions and nearly 90% of all carbon dioxide emissions.
Starting with mobility, Kofa offers a smart solution to convert Africa’s 30 million+ gas-powered motorbikes to electric vehicles (EVs), while also providing customers with additional applications for the battery throughout its lifespan. These applications include grid backup at home, serving as a grid alternative in suburban shops to power retailer appliances, and more.
Kofa’s battery swap-and-go services enable users, such as motorcycle riders, to conveniently exchange depleted batteries for fully charged ones at charging stations strategically located in key areas within major Ghanaian cities. With an ambitious goal of actively reaching 10 million customers across Africa through its battery network, Kofa aims to offset 10 million tonnes of CO2 annually by displacing petrol consumption.
Toffene Kama, Investment Principal at Mercy Corps Ventures, emphasizes the transformative potential of Kofa’s wireless energy solutions.
“These batteries are packets of energy going cableless, just like the mobile phone went wireless and conquered the whole of Africa a decade ago,” said Toffene Kama.
With the initial funding, the company aims to showcase the viability of its intelligent battery-swapping network and establish a strong foundation for future growth. By successfully executing its mission, Kofa anticipates positively impacting millions of lives while delivering approximately $2 billion in annual customer savings.