Dubai-headquartered Spiro, an electric mobility company, has announced a landmark $100 million investment round, marking the largest-ever funding deal in Africa’s e-mobility sector. The round was led by The Fund for Export Development in Africa (FEDA), the development investment arm of Afreximbank. This capital injection is set to fuel Spiro’s aggressive expansion plans as it aims to solidify its position as the leading electric motorbike company on the continent.
Record Funding To Fuel Aggressive Expansion
The new capital will enable Spiro to scale its operations dramatically, with a goal to deploy more than 100,000 electric bikes across Africa by the end of 2025. This represents a staggering 400% year-over-year increase and follows a period of rapid growth. Since CEO Kaushik Burman joined two years ago, the company has expanded from 8,000 bikes in two countries to over 60,000 bikes and 1,500 battery swap stations across six African nations, including Nigeria, Kenya, Rwanda, and Uganda. The $100 million will be directed towards expanding this swap network, increasing manufacturing capacity, and funding R&D.
A Business Model Built For Africa’s Realities
Spiro’s success is built on a battery-swapping model tailored to the needs of Africa’s motorcycle taxi drivers, known locally as boda bodas or okadas. These riders, who often struggle with high fuel costs and maintenance, can swap depleted batteries for fully charged ones at Spiro’s stations, eliminating downtime. According to the company, its e-bikes are approximately 40% cheaper upfront than traditional gasoline models and cost 30% less per kilometer to operate. Spiro generates revenue from both bike sales and its energy network, where riders pay a daily fee for access and are billed for the energy they consume.
Scaling Local Manufacturing And Infrastructure
To meet the surging demand and foster local economic growth, Spiro has established four assembly and manufacturing facilities in Kenya, Nigeria, Rwanda, and Uganda. These plants assemble bikes and manufacture key components like motors, controllers, and batteries. The company already assembles batteries in Kenya and plans to increase its local sourcing of parts from 30% to 70% within the next two years. The strategic placement of swap stations in high-traffic locations such as gas stations and shopping centers further strengthens its infrastructure and creates local employment opportunities.
About Spiro
Founded three years ago and headquartered in Dubai, Spiro is an e-mobility company focused on providing sustainable and affordable transportation solutions in Africa. The company operates a comprehensive ecosystem that includes electric motorbikes and a network of battery-swapping stations. With a presence in six African countries, Spiro aims to replace traditional gasoline-powered motorcycles, offering riders significant savings on fuel and maintenance while reducing carbon emissions. Spiro is part of the Equitane Group portfolio.
Source: TechCrunch
