Kenya’s BasiGo offers e-buses in East Africa as an alternative to polluting, gas-powered models that dominate roads on the continent. It started assembling the vehicles in Kenya in 2022 with $6.6 million in equity financing, sourcing components from Chinese electric vehicle company BYD Automotive. Last year it expanded into Rwanda and launched an app that allows riders to buy tickets.
The startup has raised $24 million in a Series A round led by African infrastructure investor Africa50, as well as Novastar Ventures, CFAO Kenya, Mobility54, SBI Investment, Trucks VC, Moxxie Ventures and Susquehanna Foundation. The equity funding unlocked $7.5 million in debt from British International Investment to scale operations in Rwanda, and a $10 million loan from the US Development Finance Corporation that is earmarked for Kenya.
Pay-as-you-drive
E-mobility providers rely on favorable policies and innovative financing models to push adoption, particularly in sub-Saharan Africa, home to an emerging start-up ecosystem for EVs. Nairobi-based BasiGo offers its e-buses to private fleet operators under a “pay-as-you-drive,” or PAYD, model, similar to popular “pay-as-you-go” programs that lower upfront costs for African consumers of cookstoves and other appliances.
Bus operators can acquire the electric vehicles for around $7,700 in Kenya and $8,800 in Rwanda, and subsequently pay mileage-based fees that cover comprehensive insurance, maintenance, charging and other costs.
“Demonstrating the viability of pay-as-you-drive has required a blend of equity, debt and grants. Following our Series A, we will continue to depend on a blend of financial instruments to scale our model and achieve our impact targets,“ BasiGo’s founder Jit Bhattacharya told ImpactAlpha.
E-bus milestone
The funding—“the largest investment to date by an African fund in an e-mobility company,” according to Africa50’s Raza Hasnaniis—will help BasiGo introduce PAYD to new vehicle types, boost its manufacturing capacity and expand geographically.
“This marks a significant step in electrifying the local public transport sector, reducing pollution, and combating climate change impacts,” said BII’s Seema Dhanani. BasiGo aims to have 1,000 e-buses on the road in East Africa within the next three years.
“With Africa’s renewable energy resources, the continent should lead the world in affordable, low-carbon public transport. BasiGo aims to make that happen, breaking Africa’s dependence on imported fuel once and for all,” said Bhattacharya.
