Local start-up Ampersand secures $21.5m in equity investment
Thursday, August 29, 2024
Taxi-moto rider with a client in Kigali. Ampersand has secured new equity investment from AHL Venture Capital and Everstrong Capital. File

Ampersand – a Rwandan electric mobility start-up – has secured new equity investment from AHL Venture Capital and Everstrong Capital and reinvestment from Beyond Capital, bringing the firm’s total funding to $21.5 million in one year.

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The total comprises $19.5 million in funding raised in December 2023 for increasing electric motorcycle battery production, expanding the swap station network, and accelerating Research and Development (R&D) on battery tech, software, and swap systems.

The latest funding was led by Ecosystem Integrity Fund (EIF), Acumen and Hard-Edged Hope Fund.

Formed in 2016, the company assembles and finances electric motorcycles that cost less to buy and operate. Since its commercial launch in May 2019, Ampersand’s fleet has grown to over 1,700 in size and is expected to exceed 10,000 in 2024.

According to the firm’s announcement, the new investment whose value was not mentioned, will enhance Ampersand’s expansion in East Africa, serving over 100 million people who use motorcycle taxis or delivery services.

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Josh Whale, CEO and founder at Ampersand, said that this latest funding will accelerate the rollout of our Electric Vehicles (EV) energy technology and infrastructure to the mass market.

The electric motorcycles are estimated to be 45 percent cheaper to run than the petrol alternatives and produce at least 75 percent less emissions, making them a compelling alternative.

"This latest funding is a testament to the strong investor confidence in our business model as we continue to scale and innovate within the African e-mobility sector. With continued urbanisation, our mission to electrify transport, cut carbon emissions and drive clean economic prosperity is more crucial than ever,” said Whale.

"This additional investment will accelerate the rollout of our EV energy technology and infrastructure to the mass market, bringing us closer to our goal of deploying five million electric motorcycles by 2033.”

In May 2019, Ampersand was the first company to put electric motorcycles on the ground in Africa. In the past four years, according to the company, its e-motorcycles have travelled a combined 180 million kilometres and avoided 8,000 tonnes of carbon emissions.

Official numbers indicate that by December 2023, Ampersand served 1,700 electric motorcycle riders with battery swaps.

These customers, together, cover 1.4 million km every week in Kigali and Nairobi, powered by 140,000 monthly battery swaps.