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Wandera Kenya-based electric vehicle startup, raised $24 million in a Series A round, including a debt commitment of up to $10 million from the US International Development Finance Corporation ( DFC), to increase the production of electric motorcycles and buses.
Equator, an Africa-focused climate technology venture fund, led the round, which also included several investors including At One Ventures, TES Ventures, Renew Capital, The World We Want and One Small Planet.
This investment comes as Roam redoubles its efforts to assemble its Move bus model, launched last year, months after the company rolled out a new, larger set of motorcycles factory.
“The goal this year is to increase and stabilize production to meet demand,” said Albin Wilson, director of products and strategy at Roam. “We want to reach a production rate of 1,000 motorcycles per month, because we believe that is where we can start to fill the market with the appropriate amount of motorcycles.”
EV Start Roam Battery Swap Station. Image credits: Roaming
Roam has built a hybrid solution for its motorcycle customers, allowing them to recharge batteries at home or at its exchange stations.
Roam said, previously he could assemble 40 Move bus per month at full production capacity. The 42-seater buses, with a range of 200 kilometers, are assembled in Kenya from parts from China and are intended for schools and the public transport sector. Roam says the buses are built to suit local usage and conditions, with features such as high ground clearance.
The company is also looking to invest in research and tooling as part of its plan to deepen the vertical integration of its products.
“We strive to own more and more models instead of purchasing off-the-shelf components. Right now we are purchasing 275 components, which means we can actually reduce our supplier margins and in the long term we can provide a profitable product to the market,” Wilson said.
Roam, founded by Gardler, Filip Lövström and Mikael Gånge, has been present in the electric mobility sector in Kenya since 2017. Before turning to assembly in 2021, thanks to significant venture capital backing, it specializes in electric vehicle conversions.
The startup plans to increase production as the push for electric vehicle adoption in Africa continues despite a number of challenges hampering the transition from fossil fuels, including weak power grids, insufficient infrastructure charging and the high acquisition costs of electric vehicles.
Despite the setbacks, electric vehicle startups in Africa are driving this gradual transition. BasiGo, for example, has also been at the forefront of introducing commercial electric mass transit buses in Kenya’s capital, Nairobi, helping some operators transition to more environmentally friendly modes of transport. the environment.
Ampersand, based in Rwanda, is the other company serving the growing electric vehicle market, particularly in Rwanda and Kenya. The company raised $19.5 million in equity funding late last year to double its production of electric motorcycle batteries and expand its network of swap stations in the two East African countries .
Other startups serving the electric vehicle market include Kiri EV, Arc Ride, Ebee, Ampersand, Spiro, Kofa, Ecobodaa and Stimaboda. These are startups behind new electric motorcycle brands and the growing battery swap network in key African markets. These companies continue to attract investor interest as Africa’s climate sector attracts sustained investor interest.
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