I’ve been watching with interest how BasiGo is making all the consequential moves in taking over the public transport in Nairobi, with eyes set to expand rapidly into Kigali.

This year (2024) alone, the pioneering electric bus company has secured more than $50 million in equity and debt funding, and won the financial and goodwill backing of US, Kenya and Rwanda governments. (and the year is yet to close)

Recent BasiGo funding

The most recent announcement on October 23 saw a BasiGo successfully close US$42 million in new capital.

The funding round consists of US$24 million in Series A equity funding along with US$17.5 million in debt facilities from British International Investment (BII) and the U.S. Development Finance Corporation (DFC).

The equity funding round was led by Africa50, the pan-African infrastructure investor and asset manager, marking the most significant investment from an African fund in an e-mobility company.

Other investors in this funding include Novastar Ventures, CFAO Kenya, Mobility54, SBI Investment, Trucks VC, Moxxie Ventures, and Susquehanna Foundation.

The Series A equity round unlocks a $10 million debt facility from DFC for BasiGo Kenya, as well as a new $7.5 million debt facility from BII specifically designed for scaling BasiGo’s E-bus deployment in Rwanda.

The DFC debt funding was announced in August during the US Ambassador to Kenya Meg Whitman visit to the electric bus assembly line at Kenya Vehicle Manufaturers (KVM) plant in Thika, just over 50km outside Nairobi.

This loan facility was meant to Boost BasiGo’s capability from assembling 5 buses to 20 every month. The plan is to produce 1,000 electric buses by 2025.

The KVM electric plant was launched by President William Ruto in 2023, showing the commitment the government has in transitioning the country’s public transport system from diesel powered engines to electric.

More demand for electric buses in Kenya

If you haven’t noticed, more and more matatu saccos and bus companies are deploying electric buses on the roads in Nairobi.

Kenya Bus Service may have lagged behind in getting on the gravy train but it eventually did. Citi Hoppa and Embassava were among the earliest adopters of electric buses on the city’s roads, followed by Metro Trans. Other major saccos with e-buses are Oma Sacco, KBS, East Shuttle, and Latema Sacco

According to BasiGo, there were 500 reservations for electric buses by August in Nairobi alone, with a further 300 orders pending from Kigali.

The two cities are arguably at the forefront of e-mobility not just in Africa but the world. Kigali recently announced a green centred policy to only register electric motorcycles for public transportation beginning January 2025.

BasiGo Rwanda was awarded a RWF 300 million (USD 225,000) recoverable grant by Ireme Invest, the Rwanda Green Fund’s green investment facility in July, to upgrade its charging infrastructure.

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

The company also plans to use part of the cash to support the expansion of BasiGo’s Pay-As-You-Drive offering to new vehicle types, and to improve BasiGo’s technology platforms such as Jani which make electric buses more accessible and convenient for passengers.

Innovation and Wins

BasiGo was named as the GSA winner of the Best Green Tech Startup at the Global Grand Finale Days 2024 event held in Istanbul, Turkey held September 24 – 25.

If the stats are anything to go, electric buses may rule the city roads in the coming five years especially with the presence of a dedicated assembly line at KVM, as well as availability of funding.