RWANDA – Kigali-based electric transport energy company Ampersand has raised US$19.5 million in equity and debt funding to help it continue to expand operations.
The investment, led by the Ecosystem Integrity Fund (EIF) alongside Acumen and Hard Edged Hope Fund, includes US$7.5 million in debt from the Africa Go Green Fund managed by Cygnum Capital.
Ampersand will use equity funds to accelerate product development and debt and equity to scale up its battery swap network to meet fast-growing demand from delivery and taxi motorcycle riders wishing to switch from fuel to electric motorcycles in Africa.
Research & Development improvements will focus on Ampersand’s next-generation of batteries and battery-swap tech.
Josh Whale, CEO and Founder of Ampersand said, “Our made-in-Africa battery fleet already leads the world in cost per km and uptime for light-electric vehicles.
“Our technology continues to advance, alongside the now rapid march of government e-mobility policies across Africa and removal of fuel subsidies, our addressable market continues to grow. With this funding, we are on track to deliver thousands more electric motorcycles in the coming months.”
Founded in 2016, Ampersand was the first company to put electric motorcycles on the ground in Africa in May 2019.
With a successful four-year track record, the company’s motorcycles have travelled a combined 180 million kilometres and avoided 8,000 tonnes of carbon emissions.
As of December 2023, Ampersand serves 1,700 electric motorcycle riders with battery swaps. These customers together cover 1.4 million km every week in Kigali and Nairobi, powered by 140,000 monthly battery swaps.
In an effort to change mobility landscape in Africa, recently, electric bus supplier, BasiGo announced the official start of passenger pilot operations in Kigali.
The startup also announced plans to put 200 electric buses on Rwandan roads by the end of 2025 backed by a US$1.5 million USAID grant.
“We especially want to thank our partners AC Group Rwanda, USAID, EU SOLUTIONSplus (Urban Living Lab Center) and City of Kigali whose support has helped make this possible!” said the company in a LinkedIn post.
This funding initiative comes against the backdrop of Rwanda grappling with rapid urbanization challenges, which have put a strain on its public transportation network.
USAID underscores the necessity for a contemporary mobility infrastructure to accommodate the burgeoning urban population in Africa, projected to surge to over 1.3 billion by 2050.
USAID’s financial injection is expected to enable BasiGo to replicate its successful Kenyan leasing model with prominent bus companies in Kigali.
Kigali, where approximately 300-400 diesel buses serve around 120,000 passengers daily, is experiencing a pressing demand for 700 buses.
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