BasiGo, a leading electric bus provider in Sub-Saharan Africa, has raised KES 5.42 billion (USD 42 million) in a new funding round aimed at accelerating the deployment of electric buses across East Africa. This funding includes KES 3.10 billion (USD 24 million) in Series A equity and KES 2.26 billion (USD 17.5 million) in debt.
The Series A round was led by Africa50, a pan-African infrastructure investor, marking a significant vote of confidence in the region’s shift towards sustainable public transport. Other investors include Novastar Ventures, CFAO Kenya, Mobility54, SBI Investment, Trucks VC, Moxxie Ventures, and the Susquehanna Foundation. The funds will enable BasiGo to expand its operations in Kenya and Rwanda, with plans to deliver 1,000 electric buses to East Africa within three years.
The capital raised also unlocks key financing facilities, including a KES 1.29 billion (USD 10 million) loan from the U.S. Development Finance Corporation (DFC) and an additional KES 968 million (USD 7.5 million) debt facility from British International Investment (BII). This capital injection will help scale BasiGo’s electric bus deployments, particularly in Kenya and Rwanda, where the company already has a presence.
Expansion in Kenya and Rwanda
BasiGo’s CEO, Jit Bhattacharya, expressed optimism about the company’s future. “Since founding BasiGo in 2021, our mission has been to create the future of clean, electric public transport in Africa. This new funding validates our business model and will allow us to focus on scaling and achieving profitability,” Bhattacharya said. He added that with BII’s backing, the company is set to deliver hundreds of emissions-free buses across the region, including in Rwanda, where BasiGo operates six pilot buses in Kigali.
Raza Hasnani, Managing Director and Head of Infrastructure Investments at Africa50, also commented on the landmark deal. “We are delighted to conclude Africa50’s first investment in the e-mobility space to support the greening of the public transport sector in Kenya and Rwanda. As the largest African investment to date in an e-mobility company, we are proud to support innovation that drives green growth and development in the region,” he said.
New Markets, New Vehicles
The investment comes at a crucial time for BasiGo as it scales operations. In Kenya, the funds will be used to expand manufacturing capacity at its electric bus assembly line at Kenya Vehicle Manufacturers (KVM). Additionally, BasiGo plans to extend its “Pay-As-You-Drive” service to new vehicle types, making electric transport more accessible to a broader range of users.
The Pay-As-You-Drive model allows public transport operators to lease buses based on usage, lowering the barrier to entry for electric buses. This model has proven successful in Kenya, where BasiGo’s buses are becoming a common sight on Nairobi’s streets.
With the Series A funding secured, the company is now eyeing further expansion in Rwanda, where demand for electric buses is growing rapidly. According to Bhattacharya, BasiGo has already received 300 reservations for electric buses from local operators in Rwanda. “We are ready to deliver hundreds of modern, emissions-free electric buses across East Africa,” Bhattacharya said.
BasiGo’s operations in Rwanda have drawn interest since the company’s pilot program launched in December 2023, with electric buses running routes both within Kigali and to neighboring towns. The new debt facility from BII will help BasiGo scale its commercial deliveries in Rwanda, further cementing its position as a leader in the region’s electric vehicle sector.
Driving Green Growth
The investment comes at a time when governments across the region are pushing for greener solutions to combat air pollution and climate change. By replacing diesel-powered buses with electric alternatives, BasiGo aims to contribute to reducing emissions in one of the world’s most rapidly urbanizing regions.
“This marks a significant step in electrifying the local public transport sector, reducing pollution, and combating climate change impacts,” said Seema Dhanani, Head of Office for Kenya and Coverage Director for East Africa at BII. “We are delighted to support BasiGo as it expands into Rwanda. This is in line with our priority of fostering sustainable economic growth.”
Steve Beck, Managing Partner at Novastar Ventures, noted the environmental and social impact of BasiGo’s operations. “As an early investor in BasiGo, we are immensely proud of the team’s progress toward transforming the public bus transport sector in Africa, delivering improved experiences for commuters and substantial environmental benefits. This latest funding round is a testament to the strong investor confidence in BasiGo’s business model,” Beck said.
