Mobility startups raise $26.5m funding in May

From the newsletter

African mobility startups raised a total of $26.5 million in funding from investors in May, a significant haul compared to the $11.7 million the sector raised in the previous month. All the May funding was in the form of equity. This grows the total funding raised by startups in the sector this year to $83.1 million, according to data from Africa: The Big Deal. 

• The funding was raised by five startups, with one startup alone accounting for 59% of the total, while two other startups accounted for 20.7% and 18.8%.

• The total funding in May was raised from a pool of 11 investors, all of whom took equity in the startups.    

More details

• Sylndr, an Egyptian used car startup founded in 2021, raised $15.7 million from investors, more than half the month’s total funding. It is the largest equity funding raised by a mobility startup since Kenya-based electric bus company BasiGo raised $24 million equity in October 2024.  

• South African electric vehicle charging company Charge raised $5.5 million in equity, the second highest investment during the period. The startup seeks to use the funding to scale the construction of solar-powered charging stations in the country with a target of 120 stations by 2026. 

• ARC Ride, a Kenya-based electric motorcycle company, also raised $5 million to expand its network of swapping stations. The startup currently has more than 144 swapping cabinets in Kenya, mainly in Nairobi. The funding will also be used to provide 5,000 electric motorcycles to buyers.   

• Nigerian startup Drive45, which offers a subscription model that allows individuals and businesses to access both brand-new and pre-owned vehicles, received an investment of $0.2 million. The firm, founded in 2021, works with a number of business clients, with its model eliminating the need for large capital expenditure to buy vehicles. 

• During the month, Tunisian startup Genow also raised $0.1 million. Also founded in 2021, the company seeks to improve road safety for industrial and recreational vehicles through development of advanced obstacle detection technology. 

• Gogo Electric, fresh from raising $3 million equity investment in April, also raised an undisclosed amount of equity in May. The Ugandan company seeks to use the recent funding to increase capacity to manufacture and assemble electric motorcycles, local battery packs, and provide battery swapping services.   

Our take

• The significant funding raised by Charge and ARC Ride shows the growing opportunity that investors are seeing in EV charging and battery swapping in Africa. Such funding will be key in expanding charging and swapping infrastructure to remote regions.

• The success of startups like Sylndr suggests that viable business models for selling vehicles, including EVs, are emerging. The next step should involve aggressive scaling of these successful ventures to reach a wider customer base. 

• May’s funding was well distributed among startups in multiple countries, namely Egypt, South Africa, Kenya, Nigeria, Tunisia, Uganda. This indicates distinct hubs of innovation across the continent, where electric mobility is growing.