BasiGo receives $4.3 million in seed funding to accelerate mass transit EV adoption in Kenya
BasiGo, a Kenya-based electric vehicle startup, has raised $4.3 million in seed funding three months after establishing operations in East Africa’s largest economy to provide clean-energy mass transit vehicles in a country heavily reliant on fossil-fuel buses.
The startup stated that it will use the new funding to establish an assembly plant in Nairobi as well as to begin sales and deliveries of its electric buses. BasiGo has already established a charging and servicing depot near the country’s main airport, Jomo Kenyatta International Airport, in Nairobi. In addition, two electric buses have been imported for the pilot program.
Novastar Ventures led the round, which included existing and new Silicon Valley investors such as Moxxie Ventures, Nimble Partners, Spring Ventures, Climate Capital, and Third Derivative. The latest round brings the startup’s total funding to $5.3 million since its inception.
“We are ecstatic to be collaborating with Novastar, Moxxie, and this incredible group of investors, all of whom have extensive experience in rapidly scaling businesses in this market.” “They recognize this extraordinary moment of opportunity and urgency, as time runs out for the world to make a meaningful impact on climate emissions,” said Jit Bhattacharya, co-founder and CEO of BasiGo. Jonathan Green is the other co-founder of the company.
“With East Africa’s abundant renewable energy, this market can leapfrog to clean, modern electric transit just as African cities emerge as the next economic growth engine.” “This investor group’s support and knowledge will catalyze BasiGo in its mission to make East Africa a leader in inclusive, sustainable bus transportation,” he said.
Bhattacharya has extensive experience in the EV space, having been a technology leader in rechargeable (lithium-ion) batteries for over 12 years. He has held executive positions at Mission Motors in Silicon Valley, Project Titan — Apple Inc’s secret electric car project — and Fenix International, an off-grid home solar system company.
Green, BasiGo’s chief financial officer, has spent the last 15 years collaborating with various companies to bring renewable energy technologies to African users.
Over the next five years, BasiGo intends to supply over 1,000 mass transit electric buses to Nairobi transportation operators. To encourage the use of these vehicles, the startup will offer drivers pay-as-you-drive credit options, as well as maintenance and charging services.
BasiGo will launch the pilot program next month, joining Swedish-Kenyan EV startup Opibus, whose first locally-manufactured electric bus hit Kenyan roads three weeks ago. Both companies have set their sights on the mass transit industry, which is gradually transitioning to clean-energy options.
The Kenyan government announced a week ago that its Bus Rapid Transit (BRT) network, a bus-based public transportation system in Nairobi that is expected to be completed this year, will only be operated by green (electric, hybrid, and biodiesel) vehicles, presenting a significant business opportunity for EV manufacturers like Opibus and assemblers like BasiGo. Opibus has been converting gasoline and diesel vehicles to electric for the last five years, but it is now expanding into the production of new vehicles in addition to e-motorcycles.
BasiGo will locally assemble its EV buses, which will be available in 25 and 36-seater configurations with a range of approximately 250 kilometers, using parts sourced from China’s EV manufacturer BYD Automotive.
“We are thrilled to be partnering with BasiGo and supporting the team’s audacious vision to transform Africa’s public bus transportation sector.” “Our investment will accelerate the adoption of electric buses through an innovative financing model, resulting in a vastly improved commuter experience as well as improved air quality in dense urban neighborhoods,” said Sapna Shah, a partner at Novastar Ventures.
It is estimated that approximately 20,000 fossil-fuel vehicles ferry commuters across Nairobi, making the public transportation service sector one of the city’s major contributors to air pollution.
The concentration of fine particulate matter 2.5 (PM2.5) in Nairobi’s air is currently 3.6 times higher than the WHO annual air quality guideline value, according to IQAir, a Swiss-based air quality technology company.
Air pollution, which kills approximately 18,000 Kenyans each year, is largely the fault of public transportation vehicles and motorcycles. Adoption of EVs is thus expected to reduce noise pollution, greenhouse gas emissions, and health complications.
