Roam, an electric vehicle (EV) startup headquartered in Kenya, has successfully raised $24 million in a Series A funding round, which includes up to $10 million in debt financing from the U.S. International Development Finance Corporation (DFC). The investment aims to fuel the expansion of Roam’s production capacity for electric motorcycles and buses.
Funding Round Details
The Series A round was led by Equator, an Africa-focused climate tech venture capital fund, with participation from various investors, including At One Ventures, TES Ventures, Renew Capital, The World We Want, and One Small Planet. This funding infusion underscores investor confidence in Roam’s mission to revolutionize the electric mobility sector in Africa.
Production Expansion and Product Focus
Roam is intensifying its efforts to scale the assembly of its Move bus model, which was introduced last year, alongside its existing motorcycle assembly operations. The company’s primary objective for the current year is to enhance production capacity to meet escalating demand. Roam aims to achieve a production rate of 1,000 motorcycles per month, a critical milestone in catering to the burgeoning market demand for electric two-wheelers.
Hybrid Charging Solution and Product Features
Roam has developed a hybrid charging solution for its motorcycle customers, offering flexibility to charge batteries either at home or at designated swap stations. The company’s Move buses, designed as 42-seater vehicles with a range of 200 kilometers, are tailored for school and public transit applications. Notably, these buses are meticulously assembled in Kenya, utilizing components sourced from China, and are engineered to withstand local operating conditions with features like high ground clearance.
Vertical Integration and Future Plans
In line with its strategic vision, Roam is prioritizing vertical integration by investing in research, tooling, and design enhancements to minimize reliance on off-the-shelf components. By optimizing in-house design capabilities, Roam aims to streamline production processes, reduce supply chain costs, and deliver cost-effective electric vehicles to the market. Currently, the company boasts 275 proprietary components, a testament to its commitment to product innovation and localization.
Evolution of Roam and Market Dynamics
Founded in 2017 by Albin Wilson, Filip Lövström, and Mikael Gånge, Roam initially focused on EV conversions before transitioning to assembly operations in 2021. Despite challenges such as limited charging infrastructure and high acquisition costs, Roam remains steadfast in its mission to drive the adoption of electric vehicles in Africa. The company’s strategic pivot reflects broader industry trends, with other EV startups like BasiGo and Ampersand spearheading similar initiatives across the region.
Growing EV Ecosystem in Africa
Roam is part of a burgeoning ecosystem of EV startups in Africa, including BasiGo, Ampersand, Kiri EV, Arc Ride, eBee, Spiro, Kofa, Ecobodaa, and Stimaboda, all contributing to the electrification of mobility solutions. These companies are actively addressing market needs by introducing new electric motorcycle brands and expanding battery-swapping networks, garnering significant investor interest amidst the growing momentum towards sustainable transportation solutions in Africa.
