In the realm of electric mobility in Africa, “potential” often outweighs “progress.” Local infrastructure is lacking, the stability of the power grid is insufficient, and most markets still rely on cheap imported fuel motorcycles. However, Spiro, headquartered in Dubai, has been striving to change this situation over the past two years.

The company recently announced the completion of a $100 million funding round, led by the African Export-Import Bank (Afreximbank) through its development arm, the African Export Development Fund (FEDA). This funding not only sets a record for the largest single investment in Africa's electric mobility sector but also solidifies Spiro's position as the most aggressive electric motorcycle company in Africa.

Spiro intends to deploy over 100,000 electric motorcycles across Africa by the end of 2025, reflecting a 400% year-on-year growth. This ambitious target underscores its goal to dominate a sector long deemed “too fragmented and difficult to scale.”

Spiro's growth trajectory is noteworthy. Two years ago, when CEO Kaushik Burman joined from Taiwan's battery swapping giant Gogoro, the startup had deployed just 8,000 electric motorcycles and 150 battery swapping stations across the neighboring nations of Benin and Togo.

Burman revealed to TechCrunch that Spiro’s operations now span six countries, including Rwanda, Kenya, Nigeria, and Uganda, with over 60,000 electric motorcycles deployed and 1,500 swapping stations established — enabling riders to exchange depleted batteries for fully charged ones. In 2022, the company recorded 4 million battery swaps, a figure that has exceeded 27 million this year.

He stated that the secret behind this growth lies in a business model “tailored to the realities of Africa.”

In African cities, motorcycle taxis (referred to as “boda boda” in Kenya and “okada” in Nigeria) serve to transport people and goods amid urban congestion, while also reaching remote rural towns. However, for the millions of riders who rely on these vehicles for their livelihood, fuel costs are a significant burden.

“These riders often spend 10 to 12 hours on the road, covering 150 to 200 kilometers while incurring high fuel expenses. By the end of the day, most are left with little to no savings,” Burman remarked. “This is why electric mobility — especially the battery swapping model — fits this group perfectly; they cannot afford downtime and need to save on expenses.”

This is where Spiro has found its niche. Burman explained that the initial purchase cost of Spiro’s electric motorcycles is about 40% lower than that of a brand-new fuel motorcycle. For instance, a typical fuel motorcycle in Kenya and Rwanda costs between $1,300 and $1,500, while Spiro’s electric motorcycle is priced around $800. Furthermore, as the cost of battery swapping is lower than refueling, the per-kilometer operating cost can be reduced by an additional 30%.

The combination of “low costs + quick return on investment” makes Spiro's model highly attractive to motorcycle taxi riders. Burman noted that most riders pay a daily fee for accessing the energy network, which allows them to save up to $3 daily on fuel and maintenance costs. “Over time, that money is enough for them to purchase another vehicle or start a small business.”

Spiro's revenue comes from two main sources: motorcycle sales and the battery swapping network. Riders can buy or lease Spiro’s electric motorcycles and pick up fully charged batteries at swapping stations, paying only for the energy they actually consume. Each swapping station is equipped with dozens of batteries and is continually charged, ensuring “zero waiting time” for the riders. Billing is managed through a proprietary algorithm that accurately measures energy usage.

The battery swapping network itself is central to Spiro's profitability: by controlling battery infrastructure and charging a small fee for each swap, the company can quickly achieve economies of scale. Burman stated, “In addition to battery swapping, we also utilize renewable energy and storage technology to ensure our swapping network operates normally even during power outages.”

Spiro’s swapping stations are located at gas stations, shopping centers, and even religious sites — this network has been built through collaborative partnerships and also creates local job opportunities.

To meet growing demand and increase employment opportunities, this three-year-old startup has established assembly and production facilities in Kenya, Nigeria, Rwanda, and Uganda. These factories are responsible for assembling motorcycles and key components such as drive motors, controllers, and batteries.

Burman revealed that Spiro has begun assembling batteries in Kenya using its proprietary Battery Management System (BMS) and plans to increase local procurement from the current 30% to 70% within two years, including components such as plastic parts, helmets, and braking components.

Of the recent $100 million funding, $75 million came from FEDA, with the remainder from other strategic investors. This capital will support the aforementioned expansion plans. Prior to this, Spiro had secured over $180 million in investment, sourced from its parent company, Equitane Group, and Société Générale, through a mixture of debt and equity.

The newly injected funds will be used to expand the swapping network, enhance production capabilities, drive research and development, and initiate pilot projects in new markets such as Cameroon and Tanzania.

As it scales, Spiro is expected to face competitive pressure from other electric mobility startups like Ampersand, ROAM, Max, and BasiGo. However, Burman does not see it that way.

“Our competitors are not other electric mobility companies but the fuel motorcycle market — including both new and used fuel motorcycles, as well as the millions of potential riders who ‘do not own a motorcycle or lack access to affordable transportation and employment opportunities.’”

Despite Africa having a population size similar to that of India, the number of motorcycles in Africa is about 25 million, whereas India boasts 320 million. Burman stated that this 13-fold gap underscores the immense potential of the future market.