Kenyan electric vehicle (EV) start-up BasiGo has taken a major step towards revolutionizing the public transportation sector in East Africa, with the announcement that it has successfully raised $42 million (equivalent to Ksh.5.4 billion) in a funding round. This substantial investment is set to propel the company towards its goal of delivering 1,000 electric buses to the region by the end of 2025, with a focus on scaling its operations in Kenya and Rwanda.
Background of BasiGo
Founded in 2021 by Jit Bhattacharya (CEO) and Jonathan Green (CFO), BasiGo has emerged as a promising player in the electric vehicle industry in East Africa, with a specific focus on public transport. The company offers electric buses under an innovative “pay-as-you-drive” model, which is designed to make electric buses more accessible to operators by lowering the initial cost barriers typically associated with EV adoption.
BasiGo launched its first electric bus in Kenya in 2022, and since then, it has been gradually expanding its fleet and operations. The company’s model is geared towards both environmental and economic sustainability, as electric buses have the potential to reduce greenhouse gas emissions while lowering operating costs for public transport operators.
Details of the Funding Round
The newly secured $42 million investment includes $24 million in Series A equity funding and $17.5 million in debt facilities. The debt financing comes from prominent international institutions, including the British International Investment (BII) and the U.S. Development Finance Corporation (DFC). Africa50, an infrastructure investment platform, led the equity funding round, which also saw participation from a range of global and local investors, including Novastar Ventures, CFAO Kenya, Mobility54, SBI Investment, Trucks VC, Moxxie Ventures, and the Susquehanna Foundation.
This investment is particularly noteworthy because it brings together both equity and debt financing, demonstrating a strong vote of confidence in BasiGo’s business model. Jit Bhattacharya, the company’s CEO, stated, “The combined equity and debt investment into BasiGo validates our business model and enables BasiGo to focus on scale and profitability. With BII’s support to expand our e-bus model in Rwanda, we are ready to deliver hundreds of modern, emissions-free electric buses across East Africa.”
Expansion Plans and Goals
The funding will allow BasiGo to significantly scale its operations in East Africa. One of the primary objectives of the company is to increase its manufacturing capacity at its assembly line located at Kenya Vehicle Manufacturers (KVM), a key partner in the production of BasiGo’s electric buses. The increased manufacturing output will be crucial to meeting the company’s goal of delivering 1,000 electric buses by 2025.
In addition to expanding manufacturing, the funding will support the scaling of BasiGo’s unique “pay-as-you-drive” model to other vehicle types, beyond buses, as part of its long-term vision. The investment will also enable BasiGo to enhance its technological platforms, including the Jani booking app, which is central to the company’s customer engagement and fleet management systems.
The funds allocated to Rwanda will further strengthen BasiGo’s presence in the country, where the company already operates six pilot electric buses in the capital city Kigali and surrounding areas. This follows BasiGo’s entry into Rwanda in December 2023, marking its first international expansion. The company has received over 300 reservations from bus operators in Rwanda, reflecting strong demand for electric buses in the region.
BasiGo has made it clear that it is committed to a regional approach to electrifying public transport, and the $7.5 million debt facility from BII dedicated to scaling operations in Rwanda is a clear indication of its intent to establish a strong foothold in the country.
Environmental and Economic Impact
The electric vehicle market in Africa, particularly for public transport, has the potential to address two key challenges faced by the continent: high transportation costs and pollution. In Nairobi, where public transport is a critical component of daily life, electric buses could drastically reduce both carbon emissions and the cost of operating buses.
Electric vehicles, including buses, are known for being more energy-efficient and environmentally friendly than their diesel counterparts. With zero tailpipe emissions, electric buses can reduce the levels of air pollution in densely populated cities like Nairobi and Kigali, contributing to better public health outcomes and a lower overall carbon footprint.
Moreover, electric buses have fewer mechanical components than traditional diesel buses, meaning they require less maintenance and experience lower wear-and-tear. This translates into reduced operating costs for public transport operators, who would benefit from lower fuel costs and fewer repair needs.
BasiGo’s “pay-as-you-drive” model further sweetens the deal for bus operators by allowing them to spread the costs of acquiring electric buses over time, which reduces the financial burden and risk associated with the adoption of new technology.
Previous Investments and Strategic Partnerships
The $42 million funding round follows previous investments that have helped BasiGo position itself as a leader in East Africa’s electric vehicle market. In March 2024, the company received a $3 million (about Ksh.388 million) investment from CFAO Kenya, a subsidiary of Toyota’s parent company. CFAO’s investment was critical in expanding BasiGo’s operations in Kenya, providing both capital and industry expertise.
In December 2023, BasiGo also secured $5 million (about Ksh.646 million) from BII, which was instrumental in supporting the company’s expansion into Rwanda.
These investments have been bolstered by strategic partnerships with key stakeholders in the region, including public transport operators, manufacturers like Kenya Vehicle Manufacturers, and government agencies in both Kenya and Rwanda. These partnerships are essential to the successful deployment of electric buses, as they ensure that the necessary infrastructure such as charging stations and maintenance facilities is in place.
The Future of Electric Mobility in East Africa
With this latest round of funding, BasiGo is well-positioned to lead the transition to electric mobility in East Africa. As the company expands its fleet of electric buses, it will be helping to create a cleaner, more sustainable future for public transportation in the region. The introduction of 1,000 electric buses by 2025 is an ambitious target, but with the backing of major investors and development finance institutions, BasiGo appears to be on track to achieve it.
The company’s success will also have a ripple effect across the broader transportation ecosystem in East Africa. By proving that electric buses can be both environmentally sustainable and economically viable, BasiGo is setting a precedent that could encourage further investment in electric vehicles in the region. Other sectors of the economy, such as logistics and personal transport, could follow suit, leading to a broader transformation of East Africa’s transportation infrastructure.
Conclusion
BasiGo’s Ksh.5.4 billion ($42 million) funding round represents a major milestone in the company’s journey to electrify public transport in East Africa. The combination of equity and debt financing reflects the strong confidence investors have in BasiGo’s business model and its potential to scale. With plans to expand its manufacturing capacity, enhance its technology platforms, and scale its operations in Kenya and Rwanda, BasiGo is poised to make a significant impact on the region’s public transport sector. The company’s success could serve as a blueprint for the broader adoption of electric vehicles across Africa, paving the way for a more sustainable future in the region.
