AFRICA – India-based electric vehicle company Spiro has secured US$50 million in debt financing from Afreximbank to expand its operations in existing and new markets across Africa.
The company operates in six countries: Benin, Togo, Kenya, Nigeria, Uganda, and Ghana, and plans to expand to Cameroon and Morocco this year.
The company has spent the past two years mapping African cities and identifying potential markets. It claims to be the largest operator of electric motorbikes in Africa and has mostly focused on two-wheelers.
Spiro is Africa’s largest electric vehicle company, with over 14000 bikes and over 9 million battery swaps in five countries.
It has 11,000 motorbikes and 300 battery-swapping stations in Benin and Togo, where it first launched.
Since its launch in September 2023, it has deployed 800 motorbikes in Kenya and 300 motorbikes in Rwanda. It plans to launch 1000 motorbikes in Uganda before the end of 2024.
Spiro’s mission is to reduce environmental impact and enhance urban mobility, build an integrated EV ecosystem in Africa with many partners, and establish a wide range of charging infrastructure, including battery swapping and direct.
“We want to produce 1 million units of 2-wheelers in five years,” said Kaushik Burman, CEO of Kigali, where the African CEO Forum was held.
Burman believes a sustainable electric vehicle environment integrates all the different facets of the industry. Hence, beyond building fast battery recharge and swapping stations, the company invests money in Internet-of-Things technology, maps, and a ride-hailing application.
“It is like Uber, but it doesn’t require bikes. But we are making bikes and will be like Uber with a ride-hailing app,” Burman said. In addition, the app will integrate a payment feature that is accessible to drivers and riders.
Afreximbank, known for stimulating the consistent expansion and diversification of African trade, has been instrumental in fostering economic development across the continent.
The bank’s support for Spiro highlights the potential of green technologies in Africa and aligns with its broader strategy to facilitate environmental sustainability and economic resilience.
“This partnership with Afreximbank is a pivotal development for Spiro,” stated Kaushik Burman, CEO of Spiro.
“The US$50 million debt facility will significantly enhance our operational capabilities and help us expand our footprint to more African countries. It’s a testament to the confidence in our business model and our contribution to sustainable development in Africa.”
The technology features will also enable the company to trace motorbikes and batteries and track usage. Behind the multilayered ride-hailing platform and technology features is a team of 50 engineers from the company’s innovation center in Pune, India.
Last August, Spiro announced a US$63 million debt funding round with Societe Generale in a deal designed to expand the company’s footprint in Benin and Togo.
Investors have funded BasiGo, Roam, Max, and Spiro to offer electric vehicles on the continent. With an estimated market size of US$15.80 billion in 2024, it is expected to reach US$25.40 billion by 2029, data from Mordor Intelligence shows.
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