In order to expand the manufacturing of electric buses and motorbikes, Kenyan EV startup Roam has raised $24 million in a Series A round, with the International Development Finance Corporation (DFC) of the United States pledging up to $10 million in loans.
The round was led by Equator, an Africa-focused climate innovation venture capital firm, and included participation from At One Ventures, TES Ventures, Renew Capital, The World We Want, and One Small Planet, among other investors.
The investment is made at a time when Roam is intensifying the construction of its Move bus model, which was introduced in the previous year, just months after establishing a larger and new motorbike assembly facility.
Albin Wilson, Roam’s Chief Product and Strategy Officer stated that “the goal this year is to increase and get stability in terms of production to meet demand. We want to get to a monthly production rate of 1,000 motorcycles because we think that is where we can start filling the market with the relevant amount of motorcycles”.
For its motorbike customers, Roam has developed a hybrid solution that allows them to charge their batteries at home or one of its switch stations.
At full production capacity, Roam originally claimed to be able to construct 40 Move buses every month. The 200-kilometer-range, 42-seater buses are intended for use in public transportation and educational institutions. They are put together in Kenya utilizing Chinese components.
According to Roam, the buses have features including high-ground clearances that are designed to suit local conditions and use. As part of its strategy to strengthen the vertical integration of its products, the company also plans to invest in research and tooling.
“we’re going deeper into owning more and more designs instead of buying off-the-shelf components. Right now, we have 275 purchase components which means that we can cut down margins on our suppliers, and in the long-term, we can provide a cost-effective product to the market,” said Wilson.
Formed in 2017, Roam is a player in Kenya’s electric mobility market, having been formed by Gardler, Filip Lövström, and Mikael Gånge. Prior to transitioning to assembly in 2021, with substantial venture capital support, it was an expert in electric vehicle conversions.
The business intends to increase manufacturing as the continent of Africa continues to push for the adoption of electric vehicles, despite several obstacles impeding the shift away from fossil fuels, such as inadequate charging infrastructure, unstable electrical grids, and high EV acquisition costs.
EV startups in Africa have been driving this steady change, despite the difficulties. For example, BasiGo has been leading the charge in Nairobi, Kenya’s capital, in the introduction of commercial electric mass transit buses, assisting some operators in making the switch to greener forms of transportation.
The other company that serves the expanding EV market, particularly in Rwanda and Kenya, is Ampersand, which is situated in Rwanda. At the end of the previous year, the company raised $19.5 million in debt-equity capital in order to increase its manufacture of electric motorcycle batteries and develop its network of exchanging stations throughout the two East African nations.
The companies behind new EV motorbike brands and the expanding battery swapping network throughout important African markets are Kiri EV, Arc Ride, Ebee, Ampersand, Spiro, Kofa, Ecobodaa, and Stimaboda. The African climate sector continues to attract investor attention, which is shown in these companies.