Ghana-based energy tech company, Kofa, has secured $8.1 million in a pre-Series A funding round to expand its battery-swapping network across urban Africa.
The funding round, which includes $3.25 million in equity, $4.315 million in debt, and $590,000 in grants, was co-led by E3 Capital and Injaro Investment Advisors, with contributions from the Shell Foundation and the UK Government’s Transforming Energy Access platform (TEA). Notable European investors also took part, including Richard Thwaites, founder of Penso Power.
Commenting on the recent funding, Andrew Darge, E3 Capital’s lead on the transaction, said, “In investing in Africa for over a decade, we have seen firsthand the evolution of Africa’s distributed renewable energy sector – and in particular the rise of electric mobility and battery technologies. Kofa stands out in having demonstrated a unique ability to build not just a product but an entire ecosystem to drive capital efficiency and create a compelling commercial opportunity for the adoption of clean energy at scale.”
The funding will help Kofa grow into more cities in Ghana and Kenya while boosting its AI-powered battery platform. This platform helps manage millions of batteries efficiently, ensuring quick, clean, and reliable energy for motorcycles, homes, and small businesses.
“This funding validates our vision to transform urban Africa’s energy landscape, and we are committed to building the ecosystem necessary to make this a reality,” Erik Nygard, CEO and Founder of Kofa, said in a statement seen by Techpoint Africa. “The shift to cleaner energy, for both domestic and commercial use, goes beyond sustainability — it drives real economic impact, but for this transition to succeed, several key elements must come together.”
Launched in 2022, Kofa has quickly grown its battery-swapping service and is driving change in the clean energy sector by providing reliable, clean energy. Today, the company carries out over 200 battery swaps a day, with a 99% success rate and an average swap time of under two minutes. This service helps users save money on fuel and keeps businesses running smoothly.
The company’s batteries are managed through a smart system that tracks usage, predicts demand, and improves energy flow. Kofa also supports local manufacturers and works with partners like TailG to design electric motorcycles tailored to African users.
In 2024, the Shell Foundation and the TEA also supported the expansion of Kofa’s battery-swapping network in Ghana, Kofa’s e-bike asset financing, research on the impact of Kofa’s multi-use battery technology, and operating expenses.
Jonathan Berman, CEO of Shell Foundation, said, “Shell Foundation supports solutions that raise incomes for everyday people in key sectors, while simultaneously lowering emissions. Kofa’s technology has huge potential for scale, and it is exciting to see this fundraise accelerate the expansion into new cities and national markets.”
Kofa’s latest funding marks a significant step forward for Africa’s fast-growing renewable energy sector. As the continent looks to reduce its reliance on fossil fuels and meet rising energy demands, innovative solutions like Kofa’s battery-swapping network are paving the way for a cleaner, more sustainable future.
