BasiGo secures Sh5.43b to deliver 1,000 electric buses across Kenya and Rwanda
HELLEN LUNALO-KNA
Kenyan electric vehicle assembler BasiGo has secured Sh5.43 billion from a group of investors through a combination of equity and debt financing to support the delivery of 1,000 electric buses over the next three years.
The funding includes Sh3.1 billion ($24 million) in Series A equity and Sh2.26 billion ($17.5 million) in debt facilities from British International Investment (BII) and the U.S. Development Finance Corporation (DFC).
Spearheaded by Africa50, this equity round marks a significant investment in Africa’s e-mobility sector. In a statement, BasiGo out lined plans to use the capital to enhance its manufacturing capabilities at its electric bus assembly line located at Kenya Vehicle Manufacturers in Thika.
The company also intends to expand its Pay-As You-Drive service and up grade its technology platform, Jani.
Additionally, the funds will facilitate BasiGo’s expansion into Rwanda, with part of the financing allocated to increasing e-bus deployment in the region.
Similarly, the investment builds on the Sh397-million funding the company received from CFAO Group earlier this year, indicating ongoing growth and strong confidence in the electric mobility sector.
Kenya has positioned itself as a frontrunner in African start-up funding, securing $437 million (Sh56.5 billion) in investments. This success is fuelled by a favourable business climate and strong investor interest in the country’s expanding start-ups.
BasiGo, founded in Kenya in 2021 by Jonathan Green and Jit Bhattacharya, secured $1 million in pre-seed funding to assemble electric buses in the country with the aim of operating them as commuter vehicles in Nairobi, commonly known as matatus.
By March 2024, BasiGo’s electric buses had effectively transported over four million passengers, contributing to a reduction of 1,175 tonnes in greenhouse gas emissions.
The recent developments have occurred seven months after the Kenyan government introduced a national E-Mobility Draft Policy designed to promote the local manufacturing and assembly of electric vehicles.
BasiGo plans to utilize the funding to expand its fleet of electric buses from 119 to 1,000 in Kenya and Rwanda within the next three years.
The funding will facilitate the expansion of its e-bus assembly line and broaden the ap plication of its pay-as-you-go financing model, enabling customers to lease BasiGo buses and mitigate high upfront costs.
The E9 Kubwa model is priced at approximately Sh7.5 million ($58,000), while standard buses used for public transit in urban areas typically exceed Sh5 million ($37,000).
BasiGo aims to leverage Nairobi’s matatu culture, which consists of small buses operated by Savings and Credit Co-operatives (SACCOs) that transport millions of passengers each day.
To facilitate this, BasiGo has formed partnerships with various SACCOs, including Super Metro and Citi Shuttle, to integrate their buses into the transportation network across Kenya.