Kenya-based EV startup ROHM raises $24 million in Series A round, including up to $10 million in debt commitment from the U.S. International Development Finance Corporation (DFC), to scale production of electric motorcycles and buses was procured.
Equator, an Africa-focused climate technology VC fund, led the round, with participation from multiple investors including At One Ventures, TES Ventures, Renew Capital, The World We Want, and One Small Planet.
This investment comes as Roam doubles its assembly. move The bus model was launched last year, a few months after the company opened a new, large-scale motorcycle assembly plant.
“Our goal this year is to increase and stabilize production to meet demand,” said Alvin Wilson, ROHM's chief product strategy officer. “We want to reach a production rate of 1,000 motorcycles a month, because we think that will allow us to start filling the market with a decent amount of motorcycles.”
Roam battery exchange station. image credits: ROHM
ROHM has built a hybrid solution for its motorcycle customers. This means customers can charge their batteries at home or at a replacement station.
Rohm previously said he could assemble 40 units. move One bus per month at full production capacity. The 42-seater bus has a range of 200 kilometers, is assembled in Kenya using parts from China, and is targeted at schools and public transport. Rohm said the buses are tailored to local uses and conditions through features such as high ground clearance.
The company is also looking to invest in research and tools as part of its plan to deepen its product vertical integration.
“We're going deeper into owning more of our designs, rather than buying off-the-shelf components. We currently buy 275 parts, which is a huge increase in supplier profits. This means we can deliver a more cost-effective product to the market in the long run,” says Wilson.
ROHM, founded by Philipp Lobström and Michael Gange, has been in the electric mobility sector in Kenya since 2017. The company specialized in EV conversion before moving into assembly in 2021 with significant venture capital backing.
The start-up is set to ramp up production as Africa continues its push to adopt electric vehicles despite the many challenges hindering the transition away from fossil fuels, including weak power grids, inadequate charging infrastructure and high EV acquisition costs. The plan is to expand.
Despite setbacks, African EV startups have been driving this gradual transition. For example, BasiGo has also been at the forefront of introducing commercial electric mass transit buses in Kenya's capital, Nairobi, helping some operators transition to greener transportation options.
Rwanda-based Ampersand is another company serving the growing EV market, particularly in Rwanda and Kenya. The company raised $19.5 million in debt equity funding late last year to double its production of electric motorcycle batteries and expand its network of exchange stations in two East African countries.
Other startups servicing the EV market include Kiri EV, Arc Ride, Ebee, Ampersand, Spiro, Kofa, Ecobodaa and Stimaboda, which are launching new EV motorcycle brands and across key African markets. A start-up company supporting a growing battery exchange network. These companies continue to attract investor interest as Africa's climate sector generates sustained investor interest.