BasiGo secures 5 million dollars debt funding

BasiGo, the innovative electric bus company, is making significant strides in revolutionizing transportation and logistics in Kenya and Rwanda. In 2022, the company secured substantial funding. It raised nearly $11 million and has since expanded its operations to Rwanda.

The expansion marks a noteworthy achievement in the sustainability shift within Africa’s public transport.

Recently BasiGo announced securing a $5 million debt funding from the British International Investment (BII), the UK’s development finance institution and impact investor.

Unlike equity funding, this borrowing model emphasizes repayment on agreed terms, highlighting BasiGo’s commitment to sustainable financial practices. It is also a substantial boost for the company’s operations.

Jonathan Green, Co-founder and CFO of BasiGo, expressed the transformative potential of electrifying public transport in Kenya. And emphasized the country’s abundant renewable energy.


What does this mean for the company?

The newly acquired funds, part of a $5.3 million debt facility, will be pivotal in scaling up the assembly of electric buses in Kenya. The company aims to deliver 100 buses in the country, building on the current fleet of 19 electric buses operational on Nairobi streets.

BasiGo’s business model introduces flexibility through a pay-as-you-drive subscription, allowing customers to either purchase an electric bus without a battery for a lower upfront cost or opt for a subscription covering the battery lease.

The K6 electric bus, priced at $35,600 initially, coupled with a $0.14 per kilometre subscription, offers an attractive and sustainable solution for matatu companies.

The company’s success is evident in its ambitious plans to expand the fleet to 1,000 buses across Kenya, Uganda, and Tanzania within the next three years.

This growth aligns with Kenya’s commitment to reducing global carbon emissions and combating climate change by embracing non-fossil-powered automobiles.

In addition to the financial backing, BasiGo received a significant boost in November 2023, securing a $1.5 million grant from the United States Agency for International Development (USAID) to support its pilot initiative in Kigali, Rwanda.

This grant underscores international recognition and support for BasiGo’s efforts to bring sustainable and eco-friendly transportation solutions to Africa.

As BasiGo continues its race with other players in the electric vehicle space, including Swedish-Kenyan firm Roam, the company’s commitment to building scalable climate solutions within Africa positions it as a leader in the emerging landscape of sustainable public transportation.

BasiGo funding and strategic initiatives indicate a promising future for it’s impact on regional transportation and logistics.