To commercialise electric bus model, $4.3 M seed funding raised by Kenya’s BasiGo

BasiGo, a Kenyan electric vehicle technology and finance firm that is introducing electric bus services to Sub-Saharan Africa, has acquired $4.3 million in early capital to enable it to commercialise its business model and commence local assembly of electric buses.

The startup offers state-of-the-art electric buses to bus operators, as well as charging and maintenance services, making these vehicles more affordable through a financing model that allows operators to pay for the battery and charging separately from the bus through a pay-as-you-go financing arrangement.

Novastar Ventures led the $4.3 million seed round, which included investors from Silicon Valley such as Moxxie Ventures, Nimble Partners, Spring Ventures, Climate Capital, and Third Derivative.

BasiGo will utilise the money to start selling and delivering electric buses this year, as well as assembling them locally in Kenya. BasiGo will sell electric buses to bus companies via its “pay-as-you-drive” finance programme, which allows public bus companies to buy an electric vehicle for the same upfront cost as a diesel bus. BasiGo wants to deploy over 1,000 locally made electric buses in Nairobi over the next five years using this concept.

“We are thrilled to be partnering with Novastar, Moxxie, and this incredible group of investors, all of whom are deeply experienced in rapidly scaling businesses in this market,” said Jit Bhattacharya, CEO and co-founder at BasiGo.

“They understand this extraordinary moment of opportunity and urgency as time runs out for the world to make a meaningful impact on climate emissions. With East Africa’s abundant renewable energy, this market can leapfrog to clean, modern electric transit at the exact moment that African cities emerge as the next centre of economic growth. The support and knowledge of this investor group will catalyse BasiGo in its mission to make East Africa a leader in inclusive, sustainable bus transport.”

BasiGo has delivered two 25-seat electric buses to Kenya, which are presently being tested in Nairobi for performance and dependability. Next month, these vehicles will go into experimental service with a few bus companies in Nairobi.

“We are excited to partner with BasiGo and support the team’s audacious vision to transform the public bus transport sector in Africa. Our investment will accelerate the adoption of electric buses through an innovative finance model, leading to a vastly improved experience for commuters as well as better air quality in dense urban neighbourhoods,” said Sapna Shah, partner at Novastar Ventures.

BasiGo has also constructed a cutting-edge charging and maintenance facility for electric buses near Nairobi’s Jomo Kenyatta International Airport. Each BasiGo electric bus helps to minimise air pollution and climate-warming emissions caused by Kenya’s diesel buses by leveraging the fact that 73 percent of Kenya’s power originates from renewable sources.

“Confronting the climate crisis and building a sustainable business to help catalyse the electrification of transportation across Africa is an extraordinary opportunity,” said Alex Roetter, general partner at Moxxie Ventures. “BasiGo has the vision and an exceptionally talented team to meet this challenge head on, and Moxxie is thrilled to support their critical mission.”