Zeno raises $25M to scale East African battery-swap network

Zeno, an electric vehicle startup, has raised $25 million in a Series A funding round to expand its battery-swap network and motorbike production in East Africa. The funding consists of about $20.5 million in equity and a $4.5 million debt facility. The equity portion was led by Congruent Ventures, with participation from Active Impact and Lowercarbon Capital. The debt facility was provided by Camber Road and Trifecta Capital. This round follows a previous $9.5 million seed round led by Lowercarbon Ventures and Toyota Ventures.

The startup is scaling production of its Emara motorbike model to meet demand in Kenya and Uganda, where motorbikes are a primary mode of transport. Zeno has built more than 800 Emara motorbikes and established more than 150 charging locations across Kenya and Uganda. The company is currently producing about 70 to 80 bikes per week to address a waiting list of more than 25,000 retail and fleet customers. Zeno aims to attract riders by offering 50% lower operating costs than traditional internal combustion vehicles. This cost reduction is particularly significant for bodaboda operators—local motorbike taxi operators—who routinely transport passengers and cargo.

The Emara motorbike’s specifications include:

• Power: 8 kilowatts of peak power, equivalent to a 150 cc internal combustion engine.
• Capacity: A carrying capacity of up to 250 kilograms (550 pounds).
• Range: About 100 kilometers (60 miles) on a single charge.
• Cost: About $1,300 without a battery, or about $2,000 with a battery.

Customers who purchase the bike without a battery can subscribe to a monthly or pay-per-use plan, swapping depleted batteries at Zeno’s stations or charging them at home.

Beyond transportation, Zeno plans to offer a battery dock that homes and businesses can use to power lights and appliances. If Zeno can commercialize the battery dock, the product could entrench the company in the region’s electrical infrastructure. This modular power approach aligns with the broader EV transition in East Africa, which is not slowing down. Michael Spencer, co-founder and CEO of Zeno, noted that the strategy of deploying electric vehicles and clean power at scale “has more legs and more room to run with lower hurdles in emerging markets.”

Why it matters

Zeno’s expansion highlights the viability of EV adoption in East Africa, where lower operating costs and modular battery infrastructure are creating a distinct competitive advantage over traditional internal combustion vehicles.