Kenyan automakers receive a 3 million USD boost

Kenya Vehicle Manufacturers (KVM) has received 3 million USD in equity funding from Toyota Tsusho Corporation-owned CFAO Group, a significant participant in the mobility sector.

The money will go toward increasing the number of electric buses assembled and distributed in Rwanda as well as the local market. A Kenyan startup that is partnered with KVM, based in Thika, initially launched 19 electric buses in Nairobi with the goal of reaching 1000 in East African regions in three years.

The corporate venture capital division of CFAO, Mobility54, and CFAO Kenya split the infusion of funds. Therefore, Jit Bhattacharya, the CEO and founder of BasiGo, expressed gratitude to CFAO in a press release for the organization’s support in the advancement of electric bus transportation in Africa.

“BasiGo provides competitive, scalable e-bus solutions because CFAO, a leading African energy and mobility company, recognizes the potential of electric mobility in Africa.” Mr. Bhattacharya stated.

After receiving a $5 million debt funding in 2022, Silicon Valley venture capitalists invested Ksh804.5 million in BasiGo to support local electric bus assembly and charging infrastructure.

According to information released by the company, it has received over 500 reservations from bus companies in Nairobi and an additional 100 from those in Kigali. With support from CFAO, the startup intends to extend the Pay-As-You-Drive financing model to a larger selection of commercial electric vehicles.

As part of its efforts to promote sustainable transportation and a green mobility ecosystem in over 40 African countries, CFAO opened its first dealership for electric vehicles in Rwanda and invested in e-mobility start-up businesses through Mobility54.

Data from the Energy and Petroleum Regulatory Authority (EPRA) shows that by June 2023, there were 2,079 electric cars and motorcycles nationwide, up from 1,350 in 2021. This represents a 729-unit increase.

The growing acceptance of electric vehicles (EVs) across the nation attests to their allure as an affordable mode of transportation that simultaneously mitigates climate change and reduces carbon emissions.

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