Dodai, an electric vehicle manufacturer based in Addis Ababa, Ethiopia, recently completed a Series A funding round, raising $4 million. The investment, backed by Nissay Capital, Musashi Seimitsu, and Inclusion Japan, is aimed at scaling up the company’s operations.
Allocation of Funds
The majority of the raised capital, about 80%, will be allocated to importing electric motorcycle parts and lithium batteries. The remaining funds will cover operational costs and software development. Dodai also plans to introduce a battery-swapping system by the end of 2024.
Focus on Green Initiatives
This funding round comes as the Ethiopian government emphasizes green initiatives, including a plan to phase out fuel-powered vehicles in the country.
Dodai’s Impact and Growth
Dodai, a Japanese electric vehicle and motorcycle manufacturer operating in Ethiopia, has already deployed 7,200 electric vehicles on Ethiopian roads, out of a total of 1.2 million vehicles. The company specializes in assembling and selling electric motorcycles.
Since its establishment in 2023 by Yuma Sasaki, Dodai has raised a total of $6.2 million, including the recent funding round, making it one of the highest amounts raised by Ethiopian startups in a single round.
Product Features and Offerings
Dodai’s electric motorcycles boast a range of up to 150 km per charge, with lithium batteries designed to last up to eight years. Additionally, the company offers short-term scooter rentals as an alternative option for customers.
Strategic Partnerships
Musashi Seimitsu, a Japanese automotive parts supplier, views its investment in Dodai as a strategic move to address mobility challenges in the region and expand its presence in the e-mobility sector. The partnership aims to introduce new EV solutions in the African market.
Future Collaborations
Future collaborations between Dodai and Musashi Seimitsu will involve designing electric scooters using Musashi’s e-Axle technology, launching three-wheeled vehicle products, and collaborating on data sharing initiatives.
Government Initiatives
In February 2024, the Ethiopian government announced plans to exclusively permit electric vehicles (EVs) in the country, banning gasoline and diesel-powered cars. This decision aligns with Ethiopia’s Logistics Master Plan, which emphasizes the deployment of “Green Transport” nationwide. Additionally, the government intends to establish electric charging stations and exempt electric vehicles from various taxes starting in 2022.
Source: Innovation Village