Kenyan electric bus solutions startup BasiGo has secured a $5 million debt facility from the UK’s development finance organization, British International Investment (BII). This funding, part of BII’s Climate Innovation Facility, will support the local production of 100 electric buses in response to the increasing demand from Nairobi bus operators.
BasiGo offers advanced electric buses, charging infrastructure, and maintenance services to bus operators. Its innovative financing model allows operators to pay for the battery and charging separately through a pay-as-you-go arrangement, making electric buses more affordable. Following earlier funding rounds, including a $4.3 million seed round in February 2022 and an additional $6.6 million in November of the same year, BasiGo has received over 350 deposits for electric buses.
The $5 million investment from BII will be utilized to scale up the local assembly of electric buses, enabling BasiGo to meet the surging demand from Kenya’s bus operators. The pay-as-you-drive financing model, facilitated by BII’s support, aims to facilitate the transition from diesel-powered to modern electric buses in Kenya’s public transport system. Each BasiGo electric bus deployed in Nairobi reduces over 50 tonnes of CO2 emissions annually compared to diesel buses.
Jonathan Green, co-founder and CFO of BasiGo,
expressed enthusiasm for the financial support from BII, emphasizing their shared commitment to building scalable climate solutions within Africa. BasiGo’s approach leverages Kenya’s renewable energy sources, offering the potential for transformative change in public transport, including reduced reliance on fuel imports, cleaner air, and more affordable transportation.
Chris Chijiutomi, Managing Director and Head of Africa at BII,
highlighted the significance of partnering with businesses like BasiGo that are pioneering climate change solutions. BII’s Climate Innovation Facility aims to support impactful, cutting-edge technologies capable of transforming lives and communities in Africa, and the collaboration with BasiGo aligns with this mission.
Source: Disrupt-Africa