Opibus Raises $7.5M for Electric Vehicle Conversion & Production

Opibus Secures $7.5 Million to Scale Electric Vehicle Production in Africa

Opibus, a pioneering Kenyan firm specializing in the conversion of diesel and gasoline vehicles to electric power, is poised for significant expansion. The company has successfully secured $7.5 million in a pre-series A funding round, paving the way for the mass production of electric buses and motorcycles.

Funding Details and Investor Support

The funding comprises $5 million in equity and $2.5 million in grants. This round was spearheaded by Silicon Valley-based At One Ventures, with additional backing from Factor[e] Ventures and Ambo Ventures, a pan-African venture capital firm. This represents Opibus’s first substantial fundraising effort, following initial capital raised from angel investors.

Electric Bus Launch Anticipated

Opibus anticipates the delivery of its inaugural electric bus by the first quarter of the subsequent year. This marks a crucial step in the company’s transition from vehicle conversions to full-scale manufacturing.

Vision for African Electrification

“We are proud to have attracted investment from globally recognized entities possessing both deep-tech expertise and a strong understanding of emerging markets,” stated Filip Gardler, CEO and co-founder of Opibus. “We believe that large-scale manufacturing of electric mobility solutions within Africa will not only enhance accessibility and affordability but also drive substantial industrialization and improve the quality of life across the region.”

Company History and Evolution

Established in 2017 by Gardler, Filip Lövström, and Mikael Gånge, Opibus initially focused on vehicle conversions. The company is now shifting its focus towards the complete manufacturing of electric vehicles, beginning with motorcycles and commercial vehicles, alongside the development of essential charging and energy infrastructure.

A Commitment to Sustainability

“The goals we’ve established for Opibus are ambitious, yet they reflect a mission of increasing importance,” Gardler emphasized. “We recognize our responsibility to future generations and to the planet as a whole.”

Strong Demand for Electric Motorcycles

Opibus has already begun accepting pre-orders for its electric motorcycles, reporting encouraging demand. These bikes will be priced starting at $1,300, with variations based on battery capacity and features. A key advantage of Opibus’s motorcycles lies in the potential for operational cost reductions of up to 60% compared to traditional fossil fuel alternatives.

Expansion Plans and Production Capacity

The company intends to relocate to a larger production facility to accommodate increased output and serve the entire African continent. This expansion is critical to meeting the growing demand for electric mobility solutions.

In-House Design and Manufacturing

“While we initially focused on giving vehicles a second life, we realized that converting motorcycles wouldn’t allow us to scale quickly enough,” explained Albin Wilson, Opibus’ chief strategy and marketing officer. “To deliver a product superior to existing options, we are designing and manufacturing our motorcycles entirely in-house.”

Geographic Reach

Beyond Kenya, Opibus currently serves clients in Nigeria, Sierra Leone, Ghana, Uganda, the Democratic Republic of Congo, and South Africa, demonstrating its expanding footprint across the continent.

Benefits of Electric Mobility in Sub-Saharan Africa

The transition to electric power in sub-Saharan Africa promises numerous benefits, including reduced transportation costs and lower carbon emissions. Countries like South Africa, Mauritius, and Rwanda are already leading the way, with South Africa developing a roadmap for EV production and adoption, and Rwanda implementing incentives to lower the cost of EV ownership.

Investor Perspective

“The electric mobility sector in Africa presents a significant opportunity – to provide a superior service at a lower cost, reduce carbon emissions, and mitigate the health risks associated with particulate pollution,” noted Morgan DeFoort, managing partner at Factor[e] Ventures.

Challenges and Opportunities

While electric mobility in Africa is still in its early stages, the potential for growth is substantial, contingent upon the development of supporting infrastructure. Key challenges include the high initial cost of EVs, limited charging infrastructure, inadequate grid connectivity, taxation policies, and a lack of public awareness.

Infrastructure Development

Recognizing the critical need for infrastructure, Opibus has begun installing communal charging stations to support public transport providers. These hubs will be strategically located near Nairobi, forming a network to facilitate the operation of the planned electric buses. The company also intends to collaborate with mini-grid companies to provide charging access for motorcycle customers in rural areas.

Technological Advancements and Vehicle Performance

Opibus anticipates that decreasing prices of components like solar batteries will further enhance the viability of electric vehicles. To date, the company has converted 170 vehicles for diverse clients, including mining companies and tour operators. Converted SUVs can reach speeds of up to 50 miles per hour, with an off-road range exceeding 60 miles.

Conversion Process

Opibus’s conversion process involves replacing diesel and gasoline engines with electric motors and controllers, powered by battery packs that are integrated with minimal modifications to the vehicle chassis.