Q&A: Why asset financing for EV startups trumps equity and debt

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Electric mobility startups need asset financing over equity and debt, says Stuart Minnaar, the manager of MobilityX Africa, in an interview with Mobility Rising. This helps them avoid equity dilution and heavy debts. Under this model, MobilityX Africa purchases assets like batteries and swapping stations, letting companies use them and repay from revenue generated.

• Mr Minnaar manages MobilityX Africa, which oversees MobilityX Ventures funding electric mobility startups across Africa. He is also a managing partner at Spain-based Fundie Ventures, a role he has held for a decade.

• “Data drives everything we do, helping investors make informed decisions despite Africa’s inconsistent records,” says Mr Minnaar. “We harmonise founder insights, investor knowledge, reports, and battery management data into a reliable dataset which helps investors make decisions”.

More details

How does MobilityX Africa define mobility, and why did you choose to focus exclusively on this sector in Africa?

Mr Minnaar: At MobilityX Africa, we see mobility as an umbrella that covers e-mobility, logistics, transport, and delivery; essentially anything that moves people or goods. This focus is intentional because urbanisation in African cities is driving an urgent need for reliable, sustainable transport solutions. By narrowing our scope to mobility, we can go deep in understanding the ecosystem, supporting founders, and unlocking capital. For us, mobility is not just vehicles; it’s the entire system of bikes, batteries, and infrastructure that keeps economies moving.

What is the core strategy behind MobilityX Africa’s work?

Mr Minnaar: Our strategy is to act as a bridge between capital allocators and mobility companies by using data as the foundation. We map the ecosystem from both the top-down, engaging with over 60 funds and capital providers, and the bottom-up, working directly with founders. This dual approach helps us identify where the gaps lie, such as mismatched expectations between funders and startups. Ultimately, our role is to catalyse investment by making the sector more transparent and investable.

What role does asset financing play in enabling e-mobility companies to scale?

Mr Minnaar: Asset financing is crucial because many startups in this space are highly capital-intensive, owning bikes, batteries, and swap stations. Traditional debt is expensive and banks often don’t understand how to value EV assets, especially batteries. Through asset financing, we purchase and own the assets while allowing startups to use them and repay based on revenue generated. This keeps their balance sheets lighter, prevents unnecessary equity dilution, and gives them a stronger foundation to attract growth-stage investment later.

How does your financing model differ from traditional debt or equity funding?

Mr Minnaar: Unlike debt, which demands fixed repayments, our model ties repayments to the actual revenue generated by the assets, reducing the pressure on startups. And unlike equity, where founders give away ownership to buy depreciating assets, our model lets them preserve equity while still accessing the tools they need to grow. This approach aligns incentives between investors and founders; both benefit from efficient asset use. It’s a new way of structuring capital that better fits the realities of African mobility companies.

How important is data in your strategy, and how do you deal with fragmented information in Africa?

Mr Minnaar: Data is at the heart of everything we do, because it allows investors to make informed decisions. Africa’s data challenge is that government records, like vehicle registrations, are often incomplete or inconsistent. To overcome this, we combine founder insights, investor knowledge, and published reports into a harmonised dataset that we make publicly available. While no dataset is perfect, this approach ensures that investment decisions are guided by reliable and relevant information.

From your analysis, what are the biggest bottlenecks in Africa’s e-mobility sector?

Mr Minnaar: The first bottleneck is batteries, which are mostly imported and not designed for African roads, leading to shorter lifespans and higher costs. Accurate battery performance data is scarce, making it difficult for financiers to price risk correctly. The second bottleneck is charging infrastructure. Without reliable and accessible networks, adoption will remain slow. These two issues, batteries and charging, are where much of the ecosystem’s growth is being held back.

How does charging infrastructure and interoperability fit into your long-term strategy?

Mr Minnaar: Charging infrastructure is the backbone of e-mobility adoption, and without it, even the best vehicles won’t scale. We see interoperability as key because no single OEM can cover an entire market, and riders need confidence that they can charge or swap anywhere. Our approach is to work with international OEMs, local players, and capital partners to roll out neutral, third-party charging networks. This ecosystem model creates efficiency and lowers barriers for adoption across Africa.

Looking ahead, what is MobilityX Africa’s vision for the continent’s e-mobility ecosystem?

Mr Minnaar: Our vision is to help create a sustainable and investable ecosystem where data, capital, and strategy align to unlock growth. We believe the future of African e-mobility depends less on vehicle design and more on the scalability of batteries and charging infrastructure. By supporting asset-light business models and promoting interoperability, we aim to build an environment where both local startups and international players can thrive. We want to position mobility as a driver of economic transformation across the continent.