Kofa Expands Operations in Kenya with $8.1 Million Investment

Kofa, a Ghana-based renewable energy company, has secured $8.1 million in pre-Series A funding to expand its AI-powered battery-swapping network across urban centers in Africa.

This funding round includes $3.25 million in equity, $4.32 million in debt, and $590,000 in grants. The company plans to use the funds to extend its battery-swapping services for electric motorbikes and small businesses in Ghana, Kenya, and other fast-growing cities.

In February of the previous year, Kofa signed a deal with Kenyan carmaker Autopax to set up an electric motorcycle assembly and distribution plant, further bolstering its presence in East Africa.

According to Erik Nygard, the CEO and founder of Kofa, "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."

Kofa aims to accelerate the rollout of its smart energy management platform, which will enhance its battery-swapping services, particularly in Kenya, where the boda boda transport system plays a vital role in the economy.

The company sees a significant opportunity to scale its services sustainably in this sector. Nygard added, “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.”

The funding follows a previous £6.15 million investment from the Shell Foundation, which helped Kofa expand operations in its home market. Investors have backed Kofa due to its integrated ecosystem approach, with the potential to deliver both commercial returns and measurable climate and development impact.

“Kofa stands out by building an entire ecosystem that’s capital-efficient and scalable,” said Andrew Darge of E3 Capital.

“This aligns with our mission to back low-carbon, high-impact solutions across Africa. We’re proud to back a solution that directly benefits communities,” said Jerry Parkes, MD, Injaro Investment Advisors.

“Kofa's technology has huge potential for scale,” said Jonathan Berman, CEO of Shell Foundation. “It’s exciting to see this raise enable expansion into new national markets.”