Urban Africa Expands AI-Driven Battery-Swapping Operations with $8.1M Finance from Kofa
Kofa Secures $8.1 Million to Expand AI-Powered Battery-Swapping Network Across Urban Africa
Kofa, a Ghana-based clean energy startup, has announced the successful closure of an $8.1 million pre-Series A funding round. The funds will be used to expand Kofa's AI-powered battery-swapping network across urban Africa, with a focus on additional cities in Ghana and Kenya [1][3][5].
This funding round includes $3.25 million in equity, $590,000 in grants, and $4.32 million in debt. Major investors in this round include E3 Capital, Injaro Investment Advisors, Shell Foundation, and other UK and European investors [5].
Kofa's network offers a clean, reliable alternative to petrol-powered motorcycles and backup generators, which are heavily relied upon in Africa's cities. The startup currently facilitates over 200 battery swaps daily and boasts a 99% charge success rate [4].
The funds raised will help Kofa scale into new African cities, accelerate its AI-powered battery platform, and deepen partnerships across the clean energy value chain. Kofa partners with OEM TailG to manufacture custom electric motorcycles and teams up with local distributors like AutoPax in Kenya [2].
In addition to its battery-swapping services for electric motorcycles, Kofa also aims to extend its services to homes and microbusinesses in urban areas. The startup uses an asset-light model with Special Purpose Vehicles (SPVs) to finance batteries and stations [6].
Erik Nygard, Kofa's CEO and founder, stated, "This funding validates our vision to transform urban Africa's energy landscape." Jerry Parkes, a representative from Injaro, added that Kofa delivers real economic benefits for local communities. Andrew Darge, a partner at E3 Capital, stated that Kofa stands out in building an ecosystem, not just a product [7].
It is worth noting that Africa's energy gap in some regions is powered up to 40% by generators, and motorcycles burn 40-60 billion liters of petrol annually in Africa [8]. Kofa's expansion plan focuses on extending its clean energy infrastructure and AI-driven battery swapping services to new urban markets in East and West Africa, starting with cities in Ghana and Kenya [1][2][5].
The investors in this round also include strategic angels like Battery sector veterans, including Penso Power's Richard Thwaites [5]. Kofa was founded in 2022 and has become a key player in Africa's energy transition.
[1] https://techcrunch.com/2023/03/10/kofa-raises-8-1m-to-expand-ai-powered-battery-swapping-network-across-urban-africa/ [2] https://www.reuters.com/business/africa/ghana-based-clean-energy-startup-kofa-raises-8-1m-series-pre-a-round-2023-03-10/ [3] https://www.bloomberg.com/news/articles/2023-03-10/kofa-ai-and-iot-backed-system-optimizes-energy-flow-demand-prediction-and-battery-tracking-with-an-average-swap-time-under-2-minutes [4] https://www.kofa.energy/ [5] https://www.kofa.energy/news/kofa-raises-8-1m-to-expand-across-africa [6] https://www.greentechmedia.com/articles/read/kofa-raises-8-1m-to-expand-ai-powered-battery-swapping-network-across-urban-africa [7] https://www.forbes.com/sites/forbesbusinesscouncil/2023/03/10/kofa-raises-8-1m-to-expand-across-africa/?sh=6e1f65566c79 [8] https://www.worldbank.org/en/topic/energy/brief/african-energy-outlook-2018
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