BasiGo to scale public transport electrification

BasiGo, a provider of electric bus solutions in sub-Saharan Africa, has successfully secured US$42mn in new funding to help scale the electrification of public transport in sub-Saharan Africa

The new capital will support the company in its core ambition of delivering 1,000 electric buses in East Africa in the next three years. A sizeable chunk of this will be used to increase manufacturing capacity at its E-Bus assembly line in Kenya. Additional funds will also be dedicated to expanding the Pay-As-You-Drive offering to new vehicle types and to improve BasiGo’s technology platforms such as Jani.

Significant investment in electrification

The new funding for BasiGo has come from a number of different sources. Primarily, it includes a US$24mn in Series A funding and US$17.5mn in debt facilities from British International Investment (BII) and the US Development Finance Corporation (DFC). The equity funding round is led by Africa50 and marks the most significant investment from an African fund in an e-mobility company according to BasiGo. The equity round also features co-investments from Novastar Ventures, CFAO Kenya, Mobility54, SBI Investment, Trucks VC, Moxxi Ventures, and Susquehanna Foundation.

“Since we founded BasiGo in 2021, our mission has been to create the future of clean, electric public transport in Africa,” explained Jit Bhattacharya, CEO of BasiGo. “We are thrilled to have Africa50, a premier African infrastructure investment fund, recognise the potential of our mission. 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.”

Raza Hasnani, managing director and head of infrastructure investments at Africa50, remarked, “We are delighted to conclude Africa50’s first investment in the e-mobility space to support the greening of the public transport sector in Kenya and Rwanda. We believe BasiGo is well positioned to scale in East Africa and beyond given its world class engineering and operations teams, strong value proposition to transport operators and the calibre of strategic and financial partners assembled by the founders.”

Electric vehicles in East Africa

BasiGo’s operations in Rwanda began in December 2023 and now consist of six pilot electric buses running inside Kigalo as well as inter-city routes to nearby towns. As per the new debt facility from BII, the company plans to launch commercial deliveries of e-buses in the country and has already received more than 300 reservations from bus operators.

“We are delighted to support BasiGo as it expands into Rwanda,” surmised Seema Dhanani, head of office, Kenya and coverage director, East Africa at BII. “This marks a significant step in electrifying the local public transport sector, reducing pollution, and combating climate change impacts. This is in line with our priority of supporting e-mobility to foster sustainable economic growth.”

e-transport solutions are becoming an increasingly attractive option in East Africa with a number of companies seeking to support this blossoming sector. Leading EV energy tech company Ampersand, for example, has just opened a large manufacturing facility in Nairobi to help meet the increasing demand for electric motorcycles in the country. Click here to learn more about this story.