Dodai, an electric vehicle manufacturer based in Addis Ababa, Ethiopia, recently raised $4 million in a Series A funding round. The investment, funded by Nissay Capital, Musashi Seimitsu, and Inclusion Japan, will be used to enhance the company’s scale.
The company plans to allocate 80% of the raised funds to import electric motorcycle parts and lithium batteries. The remaining portion of the funds will be utilized for operational costs and software development. Dodai aims to introduce a battery-swapping system by the end of 2024.
This development surfaces as the Ethiopian government concentrates on green initiatives, including plans to prohibit fuel-powered vehicles in the country.
Dodai, a Japanese electric vehicle and motorcycle manufacturing company established in Ethiopia, has already put 7,200 electric vehicles on Ethiopian roads, out of a total of 1.2 million vehicles. The startup assembles and sells electric motorcycles.
Since its inception in 2023, Dodai, founded by Yuma Sasaki, has managed to raise a total of $6.2 million, including the recent funding round. This investment is likely one of the highest amounts accumulated by Ethiopian startups in a single round.
The electric motorcycles produced by the startup are reportedly able to cover distances up to 150 km per charge, and the lithium batteries are believed to have a lifespan of up to eight years. Additionally, Dodai provides its customers with the alternative option to rent scooters for short-term use.
Musashi Seimitsu, an automotive parts supplier based in Japan, perceives its collaborative efforts and investment in the startup as a strategic initiative. This partnership is seen as a means to address regional mobility problems and further expand its e-mobility enterprise. The company is also planning to broaden the supply of new EV solutions in the African market.
Future collaborations between the two electric vehicle enterprises will encompass various projects. These include designing electric scooters using Musashi’s e-Axle technology, launching three-wheeled vehicle products, and cooperating on data sharing initiatives.
In February 2024, the Ethiopian Minister of Transport and Logistics, Alemu Sime, publicized the government’s resolution to only permit electric vehicles (EVs) into the country, effectively banning gasoline and diesel-powered cars. This decision came on the heels of the completion of Ethiopia’s Logistics Master Plan, which includes the deployment of “Green Transport” within the country.
Additionally, owners of vehicles powered by fossil fuels are now obligated to subject their vehicles to rigorous emission tests. Vehicles failing to pass these tests will have their licenses cancelled. Moreover, the government plans to set up electric charging stations and to exclude electric vehicles from value-added tax (VAT), excise tax, and further surtaxes starting in 2022.
