Roam, a pioneering electric vehicle (EV) startup headquartered in Kenya, has successfully raised $24 million in a Series A funding round. This round includes a significant commitment of up to $10 million in debt financing from the U.S. International Development Finance Corporation (DFC), aimed at accelerating the scaling of electric motorcycle and bus production.
The funding round was led by Equator, an Africa-focused climate tech venture capital fund. Additionally, notable participation came from a consortium of investors, including At One Ventures, TES Ventures, Renew Capital, The World We Want, and One Small Planet.
The investment injection arrives as Roam intensifies efforts to ramp up the assembly of its Move bus model, which was introduced last year. This expansion initiative follows closely on the heels of Roam’s establishment of a new, larger motorcycle assembly plant.
Albin Wilson, Chief Product and Strategy Officer at Roam, outlined the company’s objectives, stating, “The goal this year is to increase and achieve stability in production to meet demand. We aim to attain a production rate of 1,000 motorcycles per month, a threshold we believe will adequately address market demands.”
Roam has developed a hybrid charging solution for its motorcycle customers, enabling battery recharging either at home or at designated swap stations.
Previously, Roam had stated its capacity to assemble 40 Move buses per month at full production capacity. These 42-seater buses, boasting a range of 200 kilometers, are assembled in Kenya using components sourced from China. They are primarily targeted at schools and the public transit sector, featuring adaptations tailored to local use and conditions, such as high ground clearance.
As part of its strategic blueprint, Roam plans to channel investments into research and tooling to deepen the vertical integration of its products. Wilson emphasized, “We’re delving deeper into owning more designs instead of relying on off-the-shelf components. Currently, we have 275 purchased components, which enables us to significantly reduce margins on our suppliers, ultimately offering a cost-effective product to the market.”
Founded by Albin Wilson, Filip Lövström, and Mikael Gånge, Roam has been actively engaged in Kenya’s electric mobility sphere since 2017. Its transition to assembly operations in 2021, supported by substantial venture capital backing, marks a pivotal phase for the company, having initially specialized in EV conversions.
Despite facing challenges such as weak electricity grids, inadequate charging infrastructure, and high EV acquisition costs, the momentum towards EV adoption in Africa persists. EV startups across the continent, including BasiGo and Ampersand, are leading the charge, introducing innovative solutions to accelerate the transition to more sustainable transportation alternatives.
Ampersand, based in Rwanda, secured $19.5 million in debt-equity funding at the end of last year, signaling its commitment to expanding the production of electric motorcycle batteries and bolstering its network of swapping stations in Rwanda and Kenya.
The burgeoning EV market in Africa is further propelled by startups like Kiri EV, Arc Ride, eBee, Spiro, Kofa, Ecobodaa, and Stimaboda, which are spearheading the development of new EV motorcycle brands and expanding battery-swapping networks across key markets on the continent. The sustained interest from investors underscores the burgeoning potential of the African climate sector.
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