BasiGo, Kenyan Electric Bus Startup, Secures $5 Million Debt Facility

Kenyan electric bus solutions startup, BasiGo, has successfully obtained a $5 million debt facility from the UK's development finance organization, British International Investment (BII).

The funding will be utilized for the delivery of 100 locally-produced electric buses.

BasiGo specializes in providing state-of-the-art electric buses, along with charging and maintenance services for bus operators.

The company employs a unique financing model, allowing operators to pay for the battery and charging separately from the bus through a pay-as-you-go arrangement, making these eco-friendly vehicles more affordable.

Having launched operations in Nairobi in November 2021, BasiGo initially secured KES100 million (US$900,000) in funding earlier that year.

Subsequently, it raised a $4.3 million seed funding round in February 2022, followed by an additional $6.6 million in new seed funding in November of the same year. This funding was earmarked for the commercial delivery of locally-manufactured electric buses and charging infrastructure.

With over 350 deposits received from Nairobi bus operators for electric buses since its inception, BasiGo has now acquired a $5 million debt facility from BII's Climate Innovation Facility. The investment aims to scale up local assembly operations to meet the rising demand from Kenyan bus operators.

The funding from BII's Climate Innovation Facility, a catalytic program for promoting climate innovation in emerging markets, is expected to play a crucial role in transitioning Kenya's public transport from diesel-powered vehicles to modern electric buses. BasiGo's pay-as-you-drive financing model allows bus operators to adopt electric buses without the burden of high upfront costs. Each electric bus deployed by BasiGo in Nairobi in place of a diesel bus is estimated to mitigate over 50 tonnes of CO2 emissions annually.

Jonathan Green, co-founder, and chief financial officer of BasiGo expressed enthusiasm about the financial support from BII, emphasizing their joint commitment to building scalable climate solutions within Africa. He highlighted the transformative potential of electrifying public transport in Kenya, offering freedom from fuel imports, cleaner air, modern and affordable transport, and a significant reduction in transport-related CO2 emissions.

Chris Chijiutomi, managing director, and head of Africa at BII, echoed the excitement, stating that partnering with businesses like BasiGo, at the forefront of tackling climate change, was thrilling. Recognizing BasiGo as a leader revolutionizing public transport in Kenya, he emphasized the potential to mitigate five million tonnes of CO2 in Nairobi alone. Chijiutomi stated that BII's Climate Innovation Facility was designed to scale impactful technologies, and the partnership with BasiGo aligns with this mission to transform the lives of people and communities in Africa.

Tom Jackson / Disrupt Africa