Kenyan-based e-mobility innovator, BasiGo, has successfully secured a substantial $3 million in an equity funding round. This financial boost was spearheaded by CFAO Group, with significant backing from Mobility54, the collaborative venture between automotive giants Toyota and CFAO.
This announcement comes on the heels of a productive fundraising period for BasiGo, which saw the company raise $6.5 million in the latter part of 2023. Notably, this included a strategic $5 million debt financing agreement with British International Investment aimed at producing 100 electric buses, tailored to meet the demands of the Kenyan market. Additionally, in November 2023, BasiGo was the recipient of a $1.5 million grant from USAID, intended to expand its operations in Rwanda significantly.
In light of this recent funding achievement, BasiGo expressed its enthusiasm, stating, “We are thrilled to confirm that BasiGo has obtained a $3 million investment from the CFAO Group, which operates the largest automotive distribution network in Africa. This collaboration between BasiGo and CFAO Group is grounded in a shared commitment to fostering a fully sustainable green energy ecosystem across the African continent.” This partnership marks a significant milestone in BasiGo’s journey, underscoring a mutual dedication to pioneering sustainable transportation solutions in Africa.
How the journey started
BasiGo commenced its journey towards revolutionizing public transportation in Kenya with its launch in November 2021, following an initial pre-seed funding of $1 million. The company introduced its electric buses, with capacities of 25 and 36 seats, boasting a range of 250 kilometers on a single charge. This range is designed to sufficiently cover daily commutes, offering a sustainable alternative to the fossil-fuel-dominated public transport sector in Kenya.
In a strategic move to facilitate the adoption of its clean energy vehicles, BasiGo revealed plans to sell its electric buses, which are assembled locally using components from BYD Automotive, a leading Chinese electric vehicle manufacturer. Understanding the financial hurdles of acquiring new technology, BasiGo crafted an innovative financing model. This approach enables customers to purchase electric buses at a price comparable to their diesel counterparts, with the difference being covered through a usage-based subscription model.
Highlighting the economic and environmental benefits of transitioning to electric buses, CEO and co-founder Jit Bhattacharya emphasized, “The cost of electric bus technology has significantly decreased over the past decade, now offering considerable operational savings over traditional fossil-fuel buses. Our mission is to empower Kenyan bus operators with these financial advantages, propelling Kenya to the forefront of sustainable public transportation globally.”
To ensure the affordability of its electric buses for potential partners, BasiGo introduced a Pay-As-You-Drive financing model. This innovative approach has garnered interest from major public bus operators in Rwanda, evidenced by the signing of letters of intent for participation in the pilot project initiated in October 2023.
Reflecting on the expansion, BasiGo’s CEO and Co-Founder, Jit Bhattacharya, highlighted Rwanda’s favorable conditions for adopting electric mobility solutions. The recent infusion of funding from CFAO has further solidified BasiGo’s position as a key player in advancing clean and sustainable public transportation in East Africa. In line with its growth strategy, BasiGo has appointed Moses Nderitu and Doreen Orishaba as Managing Directors for its operations in Kenya and Rwanda, respectively, signaling a strong commitment to its vision for an eco-friendly transportation future in the region.
