E-mobility startup Ampersand raised USD 19.5 million in equity funding round and debt facility announced on 19th December 2023. The money will ramp up electric motorcycle battery production, expand swap station network and accelerate R&D on battery tech, software and swap systems.
This is a boost to the electric motorbike industry in East Africa even as the region leads Africa in transitioning towards sustainable green transport solutions.
Ampersand prides itself as “Africa’s first electric transport energy company” and currently has over 1,000 electric motorcycles on the roads. With its over 90 percent of its fleet in Kigali, the startup has made inroads in Nairobi installing over 10 charging stations in the last three years.
Ampersand venture capital funders: boon to green transport
The venture capital round was led by Ecosystem Integrity Fund (EIF) and is joined by Acumen and Hard Edged Hope Fund.
Out of the $19.5 million for the battery manufacturer, the funding for Ampersand includes USD 7.5 million of new debt from Africa Go Green Fund (AGG) managed by Cygnum Capital.
Other investors are in this round include a successful S.A.F.E. round with investors such as Alphamundi VC, Societe Petrolieres du Rwanda, TotalEnergies, EIF and Beyond Capital Ventures raised over recent months.
The fast-growing startup will use the equity funds to accelerate product development and debt and equity to scale up Ampersand’s battery swap network. There is a growing demand from delivery and taxi motorcycle riders wishing to switch from fuel to electric motorcycles in Africa. R&D improvements will focus on Ampersand’s next-generation of batteries and battery-swap tech.
Ampersand rolled out its first pilot electric fleet in Kigali in May 2019 after setting up base in 2016. As of December 2023, the company does over140,000 monthly battery swaps serving 1,700 electric motorcycle riders mainly in Kigali, with a growing demand in Nairobi.
The company estimates it riders to be doing over 1.4 million km every week, traveling a combined 180 million kilometres and has so far avoided 8,000 tons of carbon emissions into the atmosphere.
Currently with 32 battery swap stations in Kigali and Nairobi, the company aims to serve 1,000,000 vehicles daily by 2030.
“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,” said Josh Whale, CEO and Founder of Ampersand.
While startups have been facing a lot of challenges lately while trying to raise funds from investors, green focused companies are looking to be the new frontier for cash investments.
Apart from Ampersand, other electric battery companies that have raised capital in the recent past include Stima Boda and Roam electric.
African based companies such as Safaricom are also looking to boost the venture capital chests with new investments to expand funding opportunities for startups based on the continent.
Ampersand made the shortlist for the Start Up Energy Transition’s 2023 SET100 List as one of the most promising energy start-ups in the world. It was also announced winner of the 2023 Secretary of State’s Award for Corporate Excellence in Sustainable Supply Chains.
