Zeno raises $9.5 Million to take on Ampersand and BasiGo. Zeno, a startup founded by Tesla alumnus Michael Spencer, to transform Africa’s energy and transport landscape.
Lowercarbon Capital and Toyota Ventures led the funding round with participation from 4DX Ventures, Active Impact, Advantedge, MCJ, and RedBlue.
The startup intends to accelerate its plans to introduce swappable battery technology across East Africa with the introduction of its first electric motorbikes in early 2025.
When it launches, customers will have the option to either buy or lease the products, which will cost less than a new gasoline-powered model when configured without a battery.
The startup will lease the batteries through a pay-per-use system or a subscription model, while customers will also have the option to buy the battery outright if they prefer.
In East Africa, countries including Kenya, Rwanda, Uganda, Tanzania, have been at the forefront of EV adoption.
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This development places Zeno in competition with existing EV startups in the region, including Rwanda’s Ampersand, which recently raised an additional $2 million in equity, and BasiGo, which secured $225,000 to upgrade its charging infrastructure.
About Zeno
Founded in 2022 by Michael Spencer, Zeno just exited stealth mode. The company’s platform supports electric mobility and flexible energy storage solutions, offering home charging, swap stations, and destination chargers. This enables users to power various transportation modes—such as two-wheelers as well as household appliances like electric cookstoves and solar water pumps.
Zeno aims to tap into the widespread use of motorbike taxis, known as boda bodas common in East African cities, including Nairobi, Kenya and Kampala, Uganda, as riders spend more on fuels. Meanwhile, switching to electric will help to reduce these costs.
Shortly after the bike’s launch, the company also intends to introduce its home battery dock with an available solar panel, which Spencer believes will open new market opportunities.
According to Spencer, “If you don’t have grid connectivity, you can bring your batteries home from a swap station, and you can use them to power your home. If you want to put solar on your house, that home docking station works as a solar inverter to charge those batteries. So you can be a Zeno battery subscriber for a decade and never swap batteries.”
The electric vehicle (EV) market in Africa has witnessed rapid growth recently. Although the growth is said to be relatively low compared to other regions globally, the market is projected to reach a revenue of $204.8 million in 2024.
The projected market volume is expected to reach $313.3 million by 2029, with an annual growth rate (CAGR 2024-2029) of 8.87%.
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