The transition to electric vehicles may have stalled in the U.S., but in East Africa, startups are competing in the expanding electric motorbike market. Zeno is one such company, announcing a $25 million Series A to enhance its app-controlled battery-swap network and produce more Emara motorcycles.
Michael Spencer, Zeno’s co-founder and CEO, revealed to TechCrunch that $20.5 million of this amount came from an equity fundraising led by Congruent Ventures with contributions from Active Impact and Lowercarbon Ventures. The remaining $4.5 million was obtained through a debt facility from Camber Road and Trifecta Capital.
Previously, Zeno raised $9.5 million in a seed round led by Lowercarbon Ventures and Toyota Ventures. Since coming out of stealth 18 months ago, Zeno has produced over 800 Emara motorbikes and set up 150 charging points across four East African countries.
Motorbikes are essential for transport in the region, and Zeno aims to attract riders by offering operating costs 50% lower than those of internal combustion bikes. Over 25,000 retail and fleet customers are eager for an Emara, and production runs at 70 to 80 bikes per week. The new funding round will address this demand.
The Emara can travel approximately 100 kilometers (60 miles) on a single charge and carry up to 250 kilograms (550 pounds). The bike is priced at about $1,300 without a battery and around $2,000 with one.
With 8 kilowatts of peak power, comparable to a 150 cc internal combustion engine, the Emara offers full torque from a standstill, making it capable of climbing steep hills fully loaded, which is beneficial for bodaboda operators.
Customers who opt out of buying a battery can choose a subscription or pay-per-use plan to charge bikes at home or Zeno swap stations. Similar to Slate Auto in the U.S., Zeno offers accessories and wraps for bike customization.
Zeno also plans to introduce a battery dock for powering lights and appliances at homes and businesses. This dock is in the prototype stage, with about a dozen customers testing it. If Zeno commercializes the battery dock, it could become integral to the region’s power infrastructure. Given much of East Africa’s unreliable power grid, there is potential for companies to offer more modular power solutions. Some companies focus on mini- and microgrids, while Zeno sees portable, modular batteries as a significant opportunity.
When Michael Spencer co-founded Zeno, he was inspired by Tesla’s initial master plan to implement EVs and clean power on a large scale, believing the concept to have great potential in emerging markets.