Spiro Raises $100M: Africa's Largest E-Mobility Investment

Africa's Evolving Electric Mobility Landscape

The progression of electric mobility in Africa has frequently been characterized by ambitious projections that haven't always materialized into tangible results. Limited infrastructure, inconsistent power supplies, and the prevalence of inexpensive imported motorcycles have presented significant hurdles. However, Spiro, a Dubai-based company, has been actively working to alter this trajectory over the past two years.

Significant Investment Fuels Expansion

Recently, Spiro announced a substantial $100 million investment, spearheaded by the Fund for Export Development in Africa (FEDA), the developmental branch of Afreximbank. This funding round represents the largest investment ever made in African EV mobility, solidifying Spiro’s position as the continent’s leading and most proactive electric motorbike enterprise.

Deployment Goals and Growth Trajectory

Spiro intends to deploy over 100,000 electric motorcycles throughout Africa by the close of 2025. This represents a remarkable 400% increase year-over-year, demonstrating the company’s commitment to achieving dominance in a sector previously considered too fragmented for substantial growth.

Rapid Growth and Operational Expansion

The company’s expansion has been exceptionally rapid. When Kaushik Burman assumed the role of CEO two years ago, transitioning from Taiwanese battery-swapping leader Gogoro, the startup operated with just 8,000 electric bikes and 150 swap stations in Benin and Togo.

Currently, Spiro’s operations span six countries – including Rwanda, Kenya, Nigeria, and Uganda – with a fleet exceeding 60,000 bikes and a network of 1,500 swap stations. These stations allow riders to quickly exchange depleted batteries for fully charged ones. Battery swaps have increased dramatically, rising from 4 million in 2022 to over 27 million this year, as reported by Burman to TechCrunch.

A Business Model Tailored for African Markets

Burman attributes this growth to a business model specifically designed to address the unique conditions prevalent in Africa.

The Role of Motorcycle Taxis

Motorcycle taxis – known locally as boda bodas in Kenya and okadas in Nigeria – are vital for transporting both people and goods across African cities and rural areas. However, the high cost of fuel poses a significant financial burden for the millions of riders who depend on them for their livelihoods.

“Drivers often spend 10 to 12 hours daily on the road, covering distances of 150 to 200 kilometers, while facing substantial fuel expenses. Consequently, many struggle to save any money at the end of the day,” Burman explained. “Electric mobility, particularly through a battery-swapping system, is ideally suited to this segment, offering a cost-effective solution and eliminating downtime.”

Cost Advantages and Economic Benefits

Spiro is capitalizing on this opportunity. Burman states that their electric bikes have an upfront cost approximately 40% lower than comparable gasoline-powered models. In markets like Kenya and Rwanda, where gasoline bikes typically sell for $1,300–$1,500, Spiro’s e-bikes are priced around $800 and offer roughly 30% lower running costs per kilometer due to the affordability of battery swapping compared to refueling.

This combination of reduced initial investment and faster return on investment makes Spiro’s offering appealing to taxi drivers. Burman asserts that most riders, who pay a daily fee for access to the energy network, save up to $3 per day on fuel and maintenance. “This savings can enable them to purchase another bike or initiate a small business over time,” the CEO noted.

Revenue Streams and Network Economics

Spiro generates revenue through both bike sales and its battery-swapping network. Riders can purchase or lease a Spiro bike, access charged batteries at swap stations, and pay solely for the energy consumed. Each station houses numerous batteries that are continuously recharged, guaranteeing uninterrupted service. Billing is managed through a proprietary algorithm that accurately measures energy usage.

The network itself is the core of Spiro’s profitability. By owning the battery infrastructure and charging a modest fee per swap, the company achieves significant economies of scale. “We are also integrating renewable energy sources and energy storage solutions to ensure network resilience, even during power outages,” Burman added.

Strategic Partnerships and Local Job Creation

Spiro’s swap stations are strategically located in gas stations, shopping centers, and religious institutions, facilitated through partnerships that also generate local employment opportunities.

Local Manufacturing and Supply Chain Development

To accommodate growing demand and foster job creation, the three-year-old startup has established four assembly and manufacturing facilities in Kenya, Nigeria, Rwanda, and Uganda. These facilities assemble bikes and critical components, including traction motors, controllers, and batteries.

Spiro currently assembles batteries in Kenya utilizing its proprietary battery management system (BMS) and aims to increase local sourcing from 30% to 70% within two years, encompassing materials like plastics, helmets, and brake components, according to Burman.

Funding and Future Plans

The $100 million funding round – comprising $75 million from FEDA and the remainder from other strategic investors – will support this expansion. This follows previous investments totaling over $180 million, a combination of debt and equity from the Equitane Group (Spiro’s parent company) and Société Générale.

The new capital will be allocated to expanding the swap network, increasing manufacturing capacity, investing in research and development, and launching pilot programs in new markets such as Cameroon and Tanzania.

Competitive Landscape and Market Opportunity

As Spiro expands, it may encounter increased competition from other EV startups like Ampersand, Roam, Max, or BasiGo. However, Burman believes this is not a primary concern.

“Our main competition is the gasoline bike segment – both new and used – and the millions of potential riders who currently lack access to affordable transportation and employment opportunities,” he stated.

Africa has approximately 25 million motorbikes, compared to 320 million in India, despite comparable population sizes. This 13x difference, he emphasized, highlights the substantial market opportunity that lies ahead.