African Electric Mobility Firm Secures $100 Million Investment for Expansion

Major Funding Boost for African E-Mobility

An African electric mobility company has reportedly secured $100 million in funding to expand its operations across the continent, according to industry reports. Spiro, which manufactures electric motorcycles in four African nations, claims this represents the largest capital raise in Africa’s developing but competitive e-mobility sector.

Major Funding Boost for African E-Mobility
Investment Structure and Backers
Expansion Plans and Production Targets
Market Position and Competitive Advantages
Manufacturing and Local Content
Battery Swapping Infrastructure
Industry Perspectives and Challenges
Competitive Landscape
Previous Funding and Corporate Structure

Investment Structure and Backers

Sources indicate that The Fund for Export Development in Africa, the impact investment subsidiary of Cairo-based Afreximbank, is leading the investment round with a $75 million commitment. The remaining $25 million reportedly comes from an undisclosed venture capital firm, according to the company’s statements.

Expansion Plans and Production Targets

The company plans to use the capital to significantly increase production capacity, with reports suggesting they aim to manufacture 15,000 electric motorcycles monthly from their assembly facilities in Kenya, Nigeria, Rwanda, and Uganda. Analysts note the company also intends to expand battery manufacturing operations within Africa, potentially reducing reliance on imports.

Spiro has reportedly set ambitious deployment targets, with company executives stating they plan to have 100,000 vehicles on African roads by the end of 2025. This would represent a fivefold increase compared to 2024 figures, according to their projections.

Market Position and Competitive Advantages

Kaushik Burman, Spiro’s chief executive, suggested that riders are increasingly switching from petrol motorcycles to electric alternatives due to lower operating costs, easier maintenance, and higher potential daily earnings. Company analysis reportedly estimates that running costs for electric vehicles are at least 30 percent cheaper than traditional petrol bikes.

The motorcycles retail between $800 and $1,000, with many reportedly used by ride-hailing services like Bolt and various delivery companies. Industry observers note this pricing positions the vehicles as accessible transportation solutions for commercial operators.

Manufacturing and Local Content

While the company initially relied on knockdown kits imported from China with some components from India, reports indicate Spiro has increased local content to approximately 30 percent of the bike’s total value. This localization effort could potentially create manufacturing jobs and develop supply chains within African economies.

Battery Swapping Infrastructure

The company currently operates 1,200 battery swapping stations across Kenya, Uganda, Rwanda, Nigeria, Benin, and Togo. According to their expansion plans, they aim to increase this network to 3,500 stations by year-end, addressing what analysts identify as a critical challenge for electric vehicle adoption in developing markets.

Industry Perspectives and Challenges

Deepak David, director of Africa-focused investment bank Autonomi Capital, suggested that while many e-mobility companies have successfully raised capital, the sector faces challenges as vehicles age and payment reliability becomes a factor. “Some of these companies are putting bikes out there and hoping for the best,” he noted, emphasizing the importance of sustainable business models.

Tope Lawani, managing partner of Helios Investment Partners, highlighted the capital-intensive nature of vehicle manufacturing, noting that companies must develop sales networks and regularly update models. His firm has invested in Sun Systems, a pay-as-you-go battery swapping service with compatibility across multiple manufacturers.

Competitive Landscape

The African e-mobility sector includes several other significant players, including Nairobi-based Roam (manufacturing electric buses and motorcycles), Kenya’s Ecobodaa, and Rwanda’s Ampersand. Industry analysts suggest the sector is becoming increasingly crowded, though market growth potential remains substantial.

Previous Funding and Corporate Structure

Reports indicate Spiro had previously secured approximately $180 million in investments, including $63 million in debt financing from Société Générale and equity from its parent company, Dubai-based investment vehicle Equitane. The current funding round represents a significant additional capital infusion for the two-year-old company’s expansion ambitions.