Kenyan electric bus startup BasiGo has successfully raised $41.5 million in a mix of equity and debt funding to accelerate the expansion of its electric bus services across East Africa. The funding round includes a $24 million Series A equity round led by Africa50, the British International Investment (BII), and the U.S. Development Finance Corporation (DFC), alongside a $17.5 million debt facility.
Notable investors in the equity round include Novastar Ventures, CFAO Kenya, Mobility54, and SBI Investments. The debt portion features a $10 million loan from DFC aimed at supporting BasiGo’s Kenyan operations and a $7.5 million facility from BII for expanding services into Rwanda.
Founded in 2021 by Jonathan Green and Jit Bhattacharya, BasiGo aims to revolutionize public transportation in Africa by introducing electric buses to reduce greenhouse gas emissions. The startup launched with an initial $1 million pre-seed investment and began manufacturing electric buses for Nairobi’s bustling commuter system, commonly known as matatu. By March 2024, BasiGo’s electric buses had transported over 4 million passengers, cutting greenhouse gas emissions by 1,175 tonnes.
The newly acquired funding will significantly increase BasiGo’s fleet from its current 119 buses to 1,000 over the next three years, enabling expansion into both Kenya and Rwanda. The move positions BasiGo to compete with other electric mobility companies like Roam Motors, which secured $24 million earlier this year.
Jit Bhattacharya, CEO of BasiGo, expressed enthusiasm for the expansion, noting, “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.”
The funds will also help scale BasiGo’s electric bus assembly operations and expand its innovative pay-as-you-go financing model, which allows customers to lease buses to mitigate high upfront costs. The company’s latest model, the E9 Kubwa, costs approximately KES 7.5 million ($58,000), significantly higher than the KES 5 million ($37,000) price tag for conventional diesel-powered buses used for mass transit.
A key part of BasiGo’s growth strategy is to integrate its electric buses into Nairobi’s vibrant matatu culture. Through partnerships with prominent Savings and Credit Co-operatives (SACCOs) like Super Metro and Citi Shuttle, BasiGo is bringing electric buses to the streets of Kenya’s capital, offering a cleaner, more sustainable public transport option.
Since its founding, BasiGo has continued to attract significant investment. In 2022, the company raised $4.3 million in a seed round, followed by $6.6 million later that year and an additional $5 million in debt funding from BII. Most recently, in March 2023, it secured $3 million in equity from CFAO and its venture capital arm, Mobility54.
