Ampersand, a Kigali-based electric transport energy company, has raised $19.5 million in equity and debt funding to expand operations.
Ampersand assembles and finances electric motorcycles, which cost less to buy and operate, and perform better than petrol motorcycle taxis in East Africa. The company’s electric motorcycles are designed to address the specific needs of the East African market, where millions of petrol motorcycle taxis are currently in use. By providing a more efficient and cost-effective alternative, Ampersand aims to disrupt the traditional petrol-based transportation industry.
Since its commercial launch in May 2019, Ampersand’s fleet has grown to over 1,000 in size, and is expected to exceed 10,000 by late 2024. This significant growth trajectory is a sign to the increasing demand for electric transportation solutions in East Africa. As the company continues to expand its operations, it is likely to have a profound impact on the region’s transportation setting.
Funding Round
The $19.5 million funding round was led by Ecosystem Integrity Fund (EIF), and joined by Acumen and Hard Edged Hope Fund.
Other investors were Alphamundi VC, Societe Petrolieres du Rwanda, TotalEnergies, EIF and Beyond Capital Ventures.
It also includes a $7.5 million debt facility from Cygnum Capital’s Africa Go Green Fund. The diverse group of investors participating in this funding round reflects the growing interest in Africa’s electric transportation sector. The involvement of both local and international investors demonstrates the confidence in Ampersand’s business model and its potential to drive growth in the region.
Market Growth
Ampersand’s made-in-Africa battery fleet leads the world in cost per km and uptime for light-electric vehicles, according to Josh Whale, CEO and founder of Ampersand.
“Our technology continues to advance, alongside the now rapid march of government e-mobility policies across Africa and removal of fuel subsidies, our addressable market continues to grow.
With this funding, we are on track to deliver thousands more electric motorcycles in the coming months,” said Josh Whale.
Similar transitions to electric transportation have been seen in other regions, where government policies and declining technology costs have driven growth.
For instance, in some countries, the removal of fuel subsidies has led to increased demand for electric vehicles. Additionally, governments are implementing policies to encourage the adoption of electric transportation, such as investing in charging infrastructure and offering incentives for the purchase of electric vehicles. As a result, the market for electric transportation in Africa is poised for significant growth, with Ampersand well-positioned to capitalize on this trend.
The growth of Ampersand’s fleet is also driven by the company’s focus on customer-centric approach and strong unit economics. By providing a reliable and efficient transportation solution, Ampersand is able to attract and retain customers, which in turn drives demand for its electric motorcycles. This focus on customer satisfaction and economic viability is critical to the company’s long-term success and its ability to expand its operations across East Africa.
Investor Support
Related: Top Cryptocurrencies for 2024 Include Bitcoin and More
