The US International Development Finance Corporation (DFC) has granted Ampersand, a Rwanda-based electric motorcycle startup, a $9 million financing facility to expand its operations in Rwanda and Kenya.
The network of battery swap stations and fleet of batteries that Ampersand creates and operates are at the heart of its business, allowing drivers to swap batteries faster than they can fill up their gas tank and shielding vehicle owners from the hefty upfront cost of a lithium battery pack.
Ampersand’s crew has done over 50,000 battery swaps since its commercial launch in May 2019, powering its fleet of 56 drivers for over two million kilometers. The Ecosystem Integrity Fund (EIF) and TotalEnergies invested US$4 million in the firm earlier this year to help it scale.
“We’re ecstatic to have DFC on board with this historic venture, which is gaining traction toward electrifying all five million motorbike taxis in East Africa by 2030.” DFC’s backing demonstrates the viability and investment potential of electric two-wheelers for mass-market customers in the Global South, as well as the significance of this market in achieving net-zero emissions. On the eve of COP26 in Glasgow, we feel that additional daring, fast-moving and innovative funds like PI2 are desperately needed,” said Josh Whale, Ampersand’s founder, and CEO.
DFC’s chief climate officer Jake Levine said, “DFC is happy to support Ampersand in their essential and creative work bringing e-mobility and electric bikes to Rwanda and Kenya.” “DFC is committed to making meaningful investments in developing countries that will help communities progress and grow while also building resilience and prosperity for a clean energy future. This investment, as well as Ampersand’s incredible market growth, represents a significant step in that direction.”
Ampersand will be able to grow up the number of electric bikes on the road in Rwanda and Kenya to several thousand by the end of 2022 thanks to a US$9 million loan from the DFC. The loan is part of DFC’s Portfolio for Impact and Innovation (PI2) project, which supports the company’s commitment to the US Energy Compact and its goal of allocating one-third of its assets to climate change by 2023.
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