Here are the top mobility investors in August

From the newsletter

With an investment of $7 million, British International Investment (BII) contributed about 70% of the estimated $10 million that Africa’s electric mobility sector raised in August. BII is the UK's development finance institution and has a global investment portfolio of more than $7 billion. The organisation has invested more than $38 million in EV companies in Africa to date. 

• BII plans to invest billions of dollars in global electric mobility through strategic investments in various markets and sectors, including key investments in Africa's booming electric two-wheeler market. 

• During the month, AfriCar Group Pty Ltd also acquired Koto, a platform for new car prices in Ivory Coast, for an undisclosed sum. AfriCar is the company behind Auto24.africa, a leading marketplace for certified pre-owned cars including electric cars.  

More details

• BII’s investment helped push the electric mobility sector's total funding in August to $10 million, all of which was raised by Ampersand, up from $8.1 million raised by 12 companies in July. 

• Other investors in Ampersand were Seedstars Africa Ventures, a pan-African venture capital fund, Gaia Impact, an impact advisory firm investing in the just energy transition, the Rwanda Green Fund, and Raspberry Syndicate. The company also received increased investments from existing partners including Ecosystem Integrity Fund, AHL Ventures, Acumen, HEHF, and TotalEnergies. 

• BII invested $20 million in Nigerian mobility fintech startup Moove in 2022, its biggest investment in Africa’s mobility sector. The investment was a four-year structured loan to the company, which provides revenue-based vehicle financing to entrepreneurs.  

• In the electric bus business, BII has invested more than $13 million in Kenya-based electric bus manufacturer BasiGo over the last two years. The capital is expected to help BasiGo increase its fleet in Kenya and Rwanda. 

• This comes at a time when investment inflows in Africa’s EV sector have slowed down in recent months. As shown above, there was only one funding deal in August on the whole continent. Debt and grant financing have been especially scarce, with equity financing dominating funding deals this year. 

• The EV sector is expected to continue to experience the ongoing funding gap, which has constrained investments in charging and swapping infrastructure. Inability to raise new capital has slowed down the expansion of many EV startups, while others have been forced to downsize or close after failing to convince investors. 

Our take

• While BII’s funding has been significant, it's unlikely to fill the broader funding gap that is constraining many other startups and hindering the expansion of charging and swapping infrastructure. This means that a lot of startups will continue to struggle to secure the capital they need to scale.

• The acquisition of Koto by AfriCar Group Pty Ltd shows that consolidation could increase in the market. As smaller startups struggle to raise capital, they may become attractive acquisition targets for larger, more established players.

• EV startups that can successfully combine different types of financing, including grants, debt, and equity, from a variety of sources will have a much better chance of surviving and expanding in the current environment.