Kenyan startup BasiGo has secured $24 million in equity funding and $17.5 million in debt to boost its electric bus fleet.
The Series A equity round was led by Africa50, the British International Investment (BII), and the U.S. Development Finance Corporation (DFC). Other participants included Novastar Ventures, CFAO Kenya, Mobility54, and SBI Investments.
BasiGo plans to use the funding to grow its electric bus fleet from 119 to 1,000 vehicles in Kenya and Rwanda over the next three years.
The company will also scale up its assembly line and expand its pay-as-you-go leasing model. This model helps customers avoid the high upfront costs of purchasing electric buses.
BasiGo Expands in East Africa
Part of the $17.5 million debt funding includes a $10 million facility from DFC to support BasiGo’s operations in Kenya. Another $7.5 million from BII will help expand its services to Rwanda.
“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,” said Jit Bhattacharya, CEO of BasiGo.
Since its launch in 2021, BasiGo has made significant strides. The startup, founded by Jonathan Green and Jit Bhattacharya, raised $1 million in pre-seed funding to manufacture electric buses in Kenya. The buses are used as matatus, Nairobi’s iconic commuter vehicles.
Also Read: BasiGo Rwanda Secures $225,000 Grant for Charging Upgrades
E-Bus Impact in Kenya
By March 2024, BasiGo electric buses had transported over 4 million passengers. They also reduced greenhouse gas emissions by 1,175 tonnes.
This progress aligns with the Kenyan government’s e-mobility draft policy launched in 2023 to promote electric vehicle manufacturing and assembly.
BasiGo’s new E9 Kubwa model costs KES 7.5 million ($58,000), higher than ordinary mass transit buses that cost around KES 5 million ($37,000). The pay-as-you-go leasing model helps ease the cost for customers.
BasiGo’s strategy targets Nairobi’s bustling matatu sector, partnering with SACCOs like Super Metro and Citi Shuttle. These partnerships help introduce electric buses onto Kenyan roads.
In 2022, BasiGo raised $4.3 million in seed funding, followed by $6.6 million later that year and $5 million in debt from BII. In March 2023, the startup raised an additional $3 million from CFAO and Mobility54.
With the new funding, BasiGo is set to lead East Africa’s electric bus revolution.