Zeno raises $25M to speed up production of its battery-swap motorbikes

In the rapidly evolving electric vehicle landscape, East Africa stands out as a region of growth, particularly in the electric motorbike sector. Zeno, a notable player in this market, has successfully raised $25 million in a Series A funding round aimed at enhancing its app-driven battery-swapping network and increasing production of its Emara motorcycles. Of the total funding, approximately $20.5 million was acquired through equity financing, spearheaded by Congruent Ventures, with contributions from Active Impact and Lowercarbon Ventures, according to co-founder and CEO Michael Spencer in a conversation with TechCrunch. Additionally, Zeno secured $4.5 million in a debt facility from Camber Road and Trifecta Capital. This follows a prior $9.5 million seed round, which was also led by Lowercarbon Ventures and Toyota Ventures. Since it emerged from stealth mode a year and a half ago, Zeno has produced over 800 Emara motorbikes and established more than 150 charging stations across four East African countries. The region heavily relies on motorbikes for transportation, and Zeno aims to attract riders by offering significantly lower operating costs—approximately 50% less than traditional internal combustion engines. The demand for the Emara is substantial, with over 25,000 retail and fleet customers awaiting delivery, and Zeno is currently manufacturing about 70 to 80 bikes weekly. Each Emara can travel around 100 kilometers (approximately 60 miles) on a single charge and supports a load of up to 250 kilograms (550 pounds). The motorcycle is priced at around $1,300 without a battery and $2,000 with one included. With a peak power output of 8 kilowatts, the Emara's performance rivals that of a 150 cc internal combustion bike. Its instant torque capability allows it to tackle steep inclines fully loaded, a key advantage for bodaboda operators who often transport both passengers and goods. To accommodate various purchasing preferences, customers can opt to buy the bike without a battery and instead subscribe to a monthly or pay-per-use battery plan, charging at home or at Zeno's swap stations. Zeno is also exploring additional revenue streams by offering a variety of accessories and customization options for buyers. Furthermore, the company is developing a battery dock that businesses and homes can utilize to power lights and appliances, currently in the prototype phase. If successful, this innovation could position Zeno as a vital part of the region's electrical infrastructure, which is often challenged by power supply issues. Spencer's vision for Zeno draws from his experiences at Tesla, aiming to scale electric vehicles and clean energy solutions in emerging markets. He believes that the opportunity for growth in these regions is more substantial, with fewer barriers compared to more developed markets.