The news:
- Roam, a Kenyan electric mobility startup, has announced $24 million in debt and equity funding to help it achieve its goal of expanding across Africa.
- Equator Africa, an Africa-focused climate tech VC fund, led a $14 million Series A equity round for the fund. Other investors include At One Ventures, TES Ventures, Renew Capital, The World We Want, and One Small Planet.
- Bringing the total investment to $24 million, the mobility company received a $10 million debt commitment from the US Government’s International Development Finance Corporation (DFC).
The company will use the investment to expand its production capabilities to 1,000 motorcycles a month at its new 10,000 sqm Roam Park facility. Parts of the capital will also go into research and streamlining local and global supply chain networks.
All of this contributes to the company's mission of promoting the use of electric vehicles in Africa through its green, innovative, and Africa-focused products.
Following this development, Roam is expected to move closer to achieving its long-term goal of transitioning the transportation industry in Africa to affordable, effective, and environmentally friendly vehicles by utilising locally sourced materials and existing manufacturing infrastructure.
So far, the company, which designs, develops, and deploys electric motorcycles and buses tailored to African consumers, claims to have reduced carbon emissions by more than 120,000 tonnes.
Cofounded in 2017 by Filip Lövström (CEO), Albin Wilson (chief product and strategy officer), and Mikael Gånge (CCO), Roam is a transportation operator with a specific focus on providing electric buses and motorcycles designed and produced in Kenya and offered across Africa.
Before pivoting to EV assembly in 2021, the startup specialised in EV conversions.
Since its inception about seven years ago, the startup has been on a mission to design and produce cost-effective and reliable vehicles for the African market.
Currently, the mobility startup offers Roam Rapid, an electric mass transit bus; Roam Air, an electric motorcycle; and Roam Move, an electric urban transit bus. Additionally, Roam offers charging infrastructure.
Nijhad Jamal, a partner at Equator, expressed his firm support for Roam's mission to ensure a future in African cities where mobility is efficient, accessible, and sustainable.
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DFC's Vice President of Development Credit, James Polan, stated that the agency is proud to support innovative and sustainable initiatives such as Roam.
In 2021, the Kenyan mobility startup banked $7.5 million in equity and grant financing.
