BasiGo Secures $6.6 Million In New Funding Round Led By Mobility54

In an impressive financial feat, BasiGo, the innovative electric bus startup, has raised $6.6 million in a new funding round led by Mobility54, the corporate venture capital subsidiary of Toyota Tsusho, along with Silicon Valley’s transport-centric Trucks VC, and the global entrepreneurial catalyst Novastar Ventures.

Additional investors that have joined the fiscal leap include Moxxie Ventures, My Climate Journey (MCJ), Susquehanna Foundation, Keiki Capital, and OnCapital, bringing BasiGo’s total 2022 funding to an outstanding $10.9 million. This fresh capital injection is poised to escalate the company’s commercial delivery of locally manufactured electric buses and charging stations, leveraging its Pay-As-You-Drive financing model.

BasiGo’s CEO, Jit Bhattacharya, expressed his enthusiasm for the support from leaders in both the automotive industry and climate finance, emphasizing the potential for transformation in Kenya’s transport sector, which is heavily reliant on imported petroleum despite the country’s renewable energy resources.

Kenya’s transport sector, featuring over 100,000 privately-owned buses and minibuses known as matatus, is ripe for electrification. BasiGo’s entry with electric buses has already proven successful, logging over 110,000 kilometers and transporting more than 140,000 passengers across Nairobi, primarily through collaborations with Citi Hoppa and East Shuttle. With over 100 electric bus reservations already made and strategic partnerships with KCB Bank and Family Bank facilitating up to 90% financing for bus purchases, BasiGo is on the road to revolutionize public transport in Kenya.

The endorsement from Mobility54 comes with a pledge to leverage Toyota Tsusho and CFAO’s resources to assist BasiGo’s transition from conventional diesel to electric buses, as highlighted by CEO Takeshi Watanabe.

BasiGo’s business model addresses the primary hurdle of high upfront costs associated with electric buses in emerging markets. Its Pay-As-You-Drive solution allows operators to own an electric bus with an upfront cost comparable to a diesel alternative, paying a per-kilometer subscription that covers battery leasing, charging, and comprehensive maintenance.

As fuel prices soar, BasiGo’s model offers a financially sensible alternative, as underscored by Trucks VC’s General Partner Jeff Schox, who commends the startup’s transformative potential for Africa’s public transportation.

With the next batch of 15 electric buses scheduled for January delivery and operations with Nairobi’s major bus operators, BasiGo is also scaling up its infrastructure by installing high-power, fast-charging stations across Nairobi. The company’s vision extends beyond immediate operations, aiming to locally assemble all buses delivered in 2023, and planning for a fleet of over 1,000 electric buses in Kenya by the end of 2025.

Novastar Ventures, which has followed BasiGo’s progress since its initial investment, celebrates the company’s rapid growth and the joining of new investors. Sapna Shah, a partner at Novastar, highlighted BasiGo’s achievements from the successful pilot to the commercial scale-up, emphasizing the vibrant partnership and the future prospects of electric mobility in Kenya.

BasiGo’s journey symbolizes a broader transition toward sustainable transportation in Africa, propelled by strategic partnerships, financial ingenuity, and a steadfast commitment to environmental stewardship and economic resilience.