Africa based motorcycle deployer, Spiro has announced that it has raised USD 100 million in fresh funding. The latest participation includes USD 75 million from The Fund for Export Development in Africa (FEDA), the development impact investment arm of African Export-Import Bank (Afreximbank).
While Spiro did not provide details, the remainder amount likely came from Equitane, the UAE-based fund that controls the motorcycle deployer. Prior to this latest round, Spiro had secured more than $180 million from Equitane and Société Générale as a mix of equity and debt.
The USD 100 million is the largest single-tranche fund raised by any African mobility player. This is important in a market that arguably holds the greatest promise in electric mass mobility, but has seen very little equity participation from global investors.
Spiro plans to use the funding to expand its battery-swapping infrastructure across existing and new markets, while some parts of the investment would be aimed at tech development. The electric motorcycle deployer has already deployed 60,000 motorcycles in Africa and supports them through 1200 swapping stations.
Spiro is targeting 100,000 motorcycles by the end of 2025.
At present, most of Spiro’s hardware – motorcycle and powertrains – comes from China-based Horwin, which also designed and developed the motorcycle. This is pretty much the standard practice in Africa, where almost all players have used Chinese players to develop and manufacture their motorcycles. The only exception as of now is Zeno Moto, which has developed the motorcycle on its own. The other exception is Uganda-based Gogo Electric, which converts Bajaj Boxer motorcycles to electric. Meanwhile, Kofa, another startup, has jointly developed a new motorcycle with TailG.
Spiro’s sheer volume of deployment in Africa likely makes it Horwin’s biggest customer by far. However, in terms of tech, there is some distance to cover. As an example, Spiro still uses top-connected corded type swappable batteries as compared to the blind mate system found on smart swapping stations like the ones used by Gogoro, Zeno or Sun Mobility.
Spiro recently hired Kevin Konecky, the former head of battery tech at Ola Electric, to lead its battery development efforts. With the large number of motorcycles that Spiro plans to deploy, battery optimisation would be a key focus area.
Spiro has a Massive Lead
With the latest round of funding, Spiro has now raised USD 280 million as a mix of equity and debt. The company’s aggressive growth is driven by the complete backing of Equitane, which has made Spiro the biggest motorcycle deployer in Africa by far. As a comparison, Spiro has raised more capital than all the other African players together have. At 60,000 motorcycles, it has also deployed many times more motorcycles than the other players together have. Amongst the other players, Roam has deployed only a few hunderd motorcycles to date, Ampersand claims deployment of 7,000 motorcycles while new entrant Zeno Moto has delivered a few thousand motorcycles though it claims a waiting list of more than 20,000.
Africa e-Bodas: There may be Space for 2-3 Large Sized Players
InsightEV recently published a report on the African Motorcycle Taxi and Delivery Market and we forecast that the market has the potential to absorb X.Y million electric motorcycles over the next five years.
InsightEV – Global Electric Mobility
Spiro has a target to deploy 100,000 motorcycles by the end of the year while Zeno has ambitions to deliver more than 50,000 motorcycles over the next two years. The other players likely have smaller ambitions. However, the forecasted enormity of the opportunity means that scaling up has to be fast.
With late entrants like Bajaj Auto, TVS and Honda only expected to enter the market by end 2027, the current croop of startups have an opprotunity, provided they can capture the capital to scale up fast.
The scale also means that marginal players would be squeezed out pretty fast and we may be left with 2-3 large players who can deliver efficiency and negotiate better (on cell and energy) with scale.
About Spiro
(from the InsightEV AllSpark profile of Spiro)
Spiro is based in Benin, Africa. The company was founded in 2019 as M Auto Electric in India and established itself as an ICE-to-EV conversion kit manufacturer for three-wheelers. Many of these three-wheelers were exported to Africa.
In May 2022, the company was acquired by the Abu Dhabi-based Africa Transformation and Industrialisation Fund (ATIF, now renamed to Equitane). It rebranded MAuto Spiro in 2022 and introduced the Commando motorcycle. Currently, it has two models, the Ekon and Alpha+.
At present, Spiro operates in six African countries: Kenya, Uganda, Rwanda, Nigeria, Benin and Togo, and has initiated pilots in Tanzania and Cameroon.
Statements from Relevant Stakeholders
“This landmark $100 million investment underscores our shared vision to build a pan-African battery-swapping infrastructure that empowers riders with reliable, sustainable energy and mobility across the continent.” – Kaushik Burman, CEO of Spiro
“We are delighted to partner with Spiro on this transformative initiative. Our investment reflects Afreximbank’s strong commitment to building a competitive and sustainable mobility sector in Africa. Together, we are laying the groundwork for a new era of intra-African trade and industrialization by stimulating local vehicle manufacturing, strengthening regional integration, and enhancing trade flows. At the same time, we are focused on creating skilled employment opportunities and reducing the continent’s reliance on imported second-hand vehicles.” – Professor Benedict Oramah, president of Afreximbank, and chairman of the boards of directors of Afreximbank and FEDA.
“We are proud to welcome FEDA as a strategic investor as we accelerate the growth of Spiro’s mission to transform mobility, energy storage, and distribution across Africa. Spiro’s rapid expansion into new markets reflects the continent’s strong appetite for clean, affordable, and efficient transportation. As we expand our battery swapping infrastructure and integrate renewable energy sources into our energy mix, we are positioned to unlock substantial upside in Spiro’s energy distribution.” – Gagan Gupta, Founder of Spiro and Chairman Equitane.
“Spiro’s success to date is a clear demonstration of the strength and scalability of its business model. The company’s rapid growth and strong market adoption underscore the significant demand for affordable, sustainable mobility solutions across Africa. With its integrated approach, Spiro has built a platform that is both commercially viable and socially impactful.” – Marlene Ngoyi, CEO of FEDA.
InsightEV – Global Electric Mobility
InsightEV – Global Electric Mobility
InsightEV – Global Electric Mobility
