Fika Mobility (1)

Providing interoperable EV charging infrastructure for Kenya’s commercial motorbikes

Fika Mobility is a Kenyan startup active in the transition to sustainable transportation in Africa. The company offers two core services:

• interoperable charging infrastructure compatible with other electric motorbikes (prototype tested)
• electric motorbikes with a battery on lease

Fika's primary target market is the commercial motorbike sector in Kenya, with potential expansion across Africa. Their key value proposition lies in providing an affordable, efficient, and sustainable alternative to traditional petrol-powered motorcycles, addressing the critical issues of high ownership costs, lack of charging options and environmental impact.

Fika’s focus is to address a critical gap in the electric mobility ecosystem: universal, accessible charging infrastructure. While the company began by successfully selling and leasing its own electric motorbikes and batteries - achieving milestones of 75 bikes sold, 150 batteries in circulation, and 1 million kilometers ridden - Fika has identified a larger opportunity to accelerate the adoption of e-mobility across the entire sector.

Problem

Accessing fast and affordable charging is an unsolved problem for Africa’s electric 2-Wheeler ecosystem

1. Limited Charging Infrastructure: The lack of accessible charging options for electric vehicles, especially in rural and peri-urban areas, creates range anxiety and hinders EV adoption. Most brands ring-fence their charging solution to their own bikes
2. Fear of damaging battery integrity: as each battery is a core and costly asset to local OEM, there is a skeptism that more universal charging options will damage the integrity of the battery
3. High CAPEX requirements: for each OEM to build their own charging infrastructure

Solution

Fika Mobility addresses these challenges through a smart universal charging ecosystem:

1. Ubiquitous Interoperable Charging: F-Charge provides a network of battery charging points compatible with various e-motorcycles, alleviating range anxiety and supporting broader EV adoption.
2. Proven Compatibility: Rigorous testing during the prototyping phase has demonstrated that 8 out of every 10 electric bikes currently on Kenyan roads can utilize F-Charge stations without risking battery damage.
3. Scalable Infrastructure: Through low capital expenditure requirements and strategic partnerships with real estate owners, F-Charge stations can be rapidly deployed and scaled.

• 75 bikes sold
• 150 batteries in circulation
• 1 million kilometers ridden by Fika bikes
• 10,000 battery swaps/charges completed

Bike > Rider data: based on the case study of an existing rider;

Savings of $750 per annum: 50% on fuel and 40% on servicing & maintenance compared to ICE bikes.

Team

Rishi Kohli (Founder & CEO): 20+ years of entrepreneurial experience in Africa and Asia. Founded and led multiple companies in the LEME Group, focusing on clean energy and automotive sectors

Headley Jacobus (Head of Ops): 15+ years in the renewable energy industry. Strong track record in energy systems design and battery systems. Worked in 14+ country in Africa+LATAM

Kelly Kimani (Product Engineer): trained mechatronics engineer responsible for designing, crafting, manufacturing the bikes and F-Charge units

Revenue

For the past 2 years (2022 & 2023), Fika’s focus was on bike sales via various financing agents and battery leases. Battery leasing has resulted in revenue generation from month 1.

Average revenue per rider

• Bike sales price: $1,350 per bike
• Battery lease: $19 per month

Revenue to date for 2023: $55,900 from 75 bikes+batteries (B2B clients include M-Kopa, Truckmart Africa, GIT, Little Cabs)

Fika has secured several partnerships that indicate strong potential for future growth:

• Secured partnerships with MFIs (MKOPA, WATU, MOGO and 4G) for financing
• P4G Partnership with ChargeUp! for developing a charging station network in Nairobi
• Awarded $300,000 by EEP Africa to test the commercial viability of 23 F-Charge: interoperable swap points and 120 Electric motorbikes in Kisumu, Kenya.

Rishi and his team have managed to bootstrap and grant fund the business to 4 generations of bikes and and generate revenue. This round is Fika’s first equity raise.

Fika Mobility's core product is an electric motorcycle, specifically designed for the "Boda Boda" (commercial motorcycle taxi) market in Kenya and other African countries. The company offers a e-mobility solution that includes the electric bike, smart battery technology, and a charging infrastructure. Validated solution for both B2C (riders) and B2B (companies decarbonising their fleet)

Fika's product ecosystem combines robust hardware with smart technology and a flexible infrastructure, positioning it well to address the unique challenges of the African e-mobility market.

The system is designed for scalability:

1. Modular battery design allowing for easy charge, swaps and upgrades
2. Expandable universal charging network through partnerships
3. Software infrastructure capable of managing growing user bases and data volumes

F-Charge is Fika Mobility's innovative solution to address the fragmented and unsustainable charging infrastructure in Kenya's electric motorcycle market. While competitors have been developing proprietary charging systems limited to their own vehicles, Fika is pioneering an interoperable, universal charging unit that aims to serve the entire e-mobility ecosystem.

Core Functionality and Features: F-Charge is designed as a ubiquitous EV charging infrastructure for commercial motorbikes, featuring multi-faceted sockets compatible with various electric motorcycle brands.

• Stepped charging profile, providing 2.5kW in increments
• Rapid charging from 20-80% in under 50 minutes
• High utilisation potential, reducing the need for excessive charging point deployment

F-Charge's interoperability is a game-changer for Kenya's e-mobility sector. By creating a universal charging solution, Fika is positioning itself as a crucial enabler in the country's transition to electric vehicles.

The system is compatible with multiple brands (currently Roam, with potential for Ampersand and ARC) opens up a larger market beyond Fika's own vehicle sales.

The data collection capabilities of F-Charge provide valuable insights into charging patterns and bike usage, allowing Fika to continuously improve its offerings and tailor solutions to market needs. This data-driven approach, combined with the scalable infrastructure, sets the stage for Fika to become a dominant player in Kenya's EV charging ecosystem.

Creating a robust foundation for widespread EV adoption: Fika expands its F-Charge network to cover both urban centers like Nairobi and peri-urban areas like Kisumu, Fika aims to deploy 1,500 units over 3 years-

Data achieved after initial testing on a prototype unit showed the following performance Metrics:

1. Charging Capacity: 3.3kW per slot
2. Charging Time: Full charge in 1 hour 45 minutes; 20-80% charge in less than 50 minutes
3. Charging Efficiency: Approximately 1% charge per minute, equivalent to 1km of range
4. Daily Utilization: 3 units per station used 6-8 times/day
5. Revenue Generation: $450/station/month
6. Monthly Profit: $130 net profit for a 3 unit startion

The Fika electric "Boda" is a high-performance vehicle designed to meet the demands of commercial riders. Key features include:

1. Dimensions: 1930mm x 740mm x 1200mm, with a wheelbase of 1260mm
2. Ground clearance: 250mm, suitable for varied road conditions
3. Load capacity: 200kg, accommodating rider and passenger/cargo
4. Max speed: 75km/h (regulated)m Range: 90-100km, depending on riding conditions
5. Incline capability: 15 degrees

The bike features a mid-motor, providing ample power for urban and peri-urban environments. The braking system combines a front disk brake and a rear drum brake for reliable stopping power.

The bike offers three speed modes and includes a reverse function and hazard lights for added safety and maneuverability.

At the heart of Fika's offering is its smart battery system. The battery's interchangeability is a key feature, allowing for quick swaps at designated stations, minimizing downtime for riders.

Fika focused on battery rental vs other models. Batteries are rented for $19/month. This has proven to be a great revenue model as is lowers upfront costs for riders and ensures recurring revenue from day 1.

The integrated IOT and BMS technologies enable real-time monitoring of battery health, charge status, and performance metrics.:

1. Interchangeable 72V Lithium Battery
2. Weight: Approximately 27kg
3. IOT and BMS (Battery Management System) enabled
4. Software Layer: Encompasses the end-user app and battery management app
5. Payment Integration: Utilizes mobile money systems like MPESA for seamless transactions

There is a growing investor interest and significant increasing in VC interest in the African electric two-wheeler (E2W) market, with several notable investments in recent years.

From 2021 to 2024, disclosed investments in the sector have exceeded $100 million. This figure likely underestimates the total, as it doesn't account for undisclosed deals and smaller seed rounds. The investment trend shows an acceleration, with larger rounds becoming more common in recent years, indicating growing market maturity and investor confidence.

• Other notable companies attracting investment include Kiri EV, eBee, Spiro, Kofa, Ecoboda, Bodawerk and WeTu.

Investment focus

The investment sources are a mix of venture capital firms, impact investors, development finance institutions (DFIs), and foundations are active in the space. Investors are attracted by the rapid growth of the motorcycle market in Africa (from 5 million in 2010 to over 27 million in 2022) and the projected transition to electric (expected to reach at least 50% of all motorcycle sales by 2040).

Despite growing interest, investors face challenges such as high risk premiums on African markets, lack of track records for successful exits, and the need for patient capital in hardware-focused startups. Catalytic capital: Development Finance Institutions (DFIs) and foundations play a crucial role in providing catalytic capital to incentivize private investment, although some stakeholders believe they could be more risk-tolerant.

Focus areas for investments are supporting various aspects of the E2W ecosystem:

• vehicle manufacturing/assembly
• battery technology, charging/swapping infrastructure
• innovative business models like lease-to-own schemes.

Industry Growth Drivers

1. Technological Advancements

Battery technology improvements have significantly reduced costs while increasing range and performance. For instance, lithium-ion battery prices have fallen by 89% from 2010 to 2021, reaching $132/kWh, making E2Ws more affordable and practical.

2. Regulatory Changes

Governments are implementing supportive policies to accelerate E2W adoption. Kenya's Finance Act 2023 eliminated the 16% VAT and 25% excise duty on E2Ws, while reducing corporate tax from 30% to 15% for local assemblers. Rwanda has set ambitious targets to electrify 30% of motorcycles by 2030, backed by import duty exemptions and reduced electricity tariffs for charging.

3. Shifting Consumer Preferences

Growing environmental awareness and the desire for cost-effective transportation are driving consumer interest in E2Ws. A study by Shell Foundation found that commercial riders could increase profits by 30% by switching to EVs.

4. Market Demand and Adoption Rates

The number of motorcycles in Sub-Saharan Africa grew from 5 million in 2010 to over 27 million by 2022. E2W sales are expected to reach 50% of all motorcycle sales by 2040

5. Macroeconomic Factors Rising fuel prices and the removal of fuel subsidies in countries like Nigeria are making E2Ws more attractive. For example, the African E-Mobility Alliance estimates that ICE motorcycles will become 3x more expensive to operate in Nigeria following subsidy removal.

Next possible round: Q1 2026

Historical Finances

The revenue was generated from bike sales and battery leasing, Fika sold 75 bikes and seeded its presence within Nairobi’s surrounding towns.

Key revenue milestones for 2023:

• Fika Mobility reported total revenue of $55,768
• January and February 2023: $5,539 and $10,621, respectively. September 2023: $11,885 USD (highest monthly revenue)
• Operating Profit: $33,743 USD, gross profit for 2023 was $48,580 USD, resulting in a gross margin of 87.1%.

Current model

Fika’s current revenue lines are:

• Bike sales: $1350 (COGS $850)
• Battery leasing: $19 per month (COGS $550)
• Charges/Swaps: $1.5 per charge/swap (Cost: $0.77 + 20% rev-share with venue)
• Average annual revenue per Fika rider: $2010

Bike - unit economics

Battery - unit economics

F-Charge- unit economics

South Africa, Kenya, Rwanda, Uganda, Ethiopia, and Nigeria make up around 70 percent of sub-Saharan Africa’s annual vehicle sales and 45 percent of the region’s population, the vehicle sales is expected to grow from 25 million vehicles today to an estimated 58 million by 2040

As of 2022, only 3.2% of bikes in Africa were electric. South Africa, which boasts the most advanced e-mobility market in SSA, only had approximately 1000 EVs in circulation in 2022, out of a total fleet of 12 million vehicles. About 80% of motorcycles are used as passenger taxis or for delivery services. And although willing to embrace EV technology, Sub-Saharan Africa is the region with the smallest number of EVs in use globally.

In much of Sub-Saharan Africa, EV adoption faces 4 large issues:

1. Governments are imprecise, inefficient, and corrupt
2. Upfront costs turn off many potential clients
3. Imported EVs don’t often suit African roads, but African engineers don’t produce domestically
4. Infrequent electricity access renders charging solutions ineffective and lacking.

There are industry tailwinds in the continent, though. Africa relies heavily on imported petroleum, which bears a large cost and introduces volatile prices. Affordable, electric transport would cut fare costs significantly. Additionally, transport-related emissions in Africa grew 84% over the past decade, offering an avenue for carbon reduction through EVs. Corporations such as Toyota and Volkswagen have identified Africa as a region for growth, and are looking to access the African EV market.

The cost issue

Solving the cost issue introduced above is the most important first step that the continent can take towards EV adoption. Once surpassing the “upfront cost” hump, the benefits of PHEV (or any form of EV, for that matter) are glaring

Key drivers of this growth

🏛Government initiatives promoting electric mobility

📢 Increasing environmental awareness

🔋 Improving charging infrastructure

⛽️ Rising fuel prices making electric alternatives more attractive

Emerging trends

🪫 Battery swapping technology to address range anxiety

🕹 Integration of IoT and smart features in e-motorcycles

🛵 Partnerships between e-mobility startups and ride-hailing platforms

⚙️ Development of local manufacturing and assembly capabilities

1. Favorable Total Cost of Ownership (TCO):
• Electric 2 Wheelers are 25% cheaper over a five-year lifecycle compared to ICE two-wheelers, despite higher upfront costs
• Savings come from reduced fuel and maintenance expenses
2. Market Characteristics:
• Two-wheelers are predominantly purchased new in sub-Saharan Africa, unlike other vehicle segments
• Over 90% are bought for commercial use (taxis or delivery services)
• High average daily distance traveled improves the TCO advantage for E2Ws
• High fleet turnover, with urban owners purchasing new two-wheelers every 2-3 years on average
3. Charging Flexibility:
• Small batteries allow charging via mini-grids, suitable for areas with unreliable electricity infrastructure
• Battery-swap models enable quick battery replacement at designated stations.

Kenya's electric two-wheeler market is rapidly expanding, with current estimates placing it at approximately $50 million. The market is projected to grow at a CAGR of 25-30% over the next 5 years, potentially reaching $150-200 million by 2028.

This growth is driven by Kenya's commitment to having 5% of all newly-registered vehicles be electric by 2025. Motorcycle registration numbers in Kenya peaked in 2021 at 285,203 registrants, but have since declined to 70,681 in 2023. As a whole, the Kenya two-wheeler market is expecting a modest CAGR of 5% until 2025.

Unique characteristics of the Kenyan market include:

1. Strong government support for e-mobility initiatives
2. High reliance on two-wheelers for transportation and delivery services
3. Growing urban population with increasing environmental awareness
4. Relatively stable electricity grid with 90% renewable energy sources

Fika Mobility's core team, comprised of Rishi Kohli (CEO and Co-Founder), Headley Jacobus (Chief Technology Officer), and Joel Kelly Kimani (Product Engineer), brings a powerful combination of entrepreneurial experience, technical expertise, and innovative spirit to the electric mobility sector in Africa.

• Rishiman Kohli, brings over two decades of entrepreneurial experience across Asia and Africa. His background in founding and leading the LEME Group, which spans laser technology, electronics, and automotive parts, provides crucial business acumen and industry insights.
• Headley Jacobus contributes deep technical knowledge with over 19 years of experience in renewable energy and off-grid solutions. His mechanical engineering education and extensive work across 14 countries in Africa, Asia, and Latin America bring invaluable insights into developing market challenges and opportunities.
• Kelly Kimani, as Product Engineer, represents the company's focus on innovation and hands-on product development. His rapid progression from intern to a key engineering role demonstrates his exceptional skills in electric vehicle design, battery technology, and quality control.
• Sharon Muriuki, Operations, leads on partners relations with Micro Finance institutions (MFI's), registration & transfer of EV Bikes, tracking and managing the Fika BMS / IOT system, following up on battery lease payments with riders

Emissions savings

Based on bike and battery specifications, Fika Mobility has the following emissions summary:

1. Each Fika electric motorbike saves approximately 3.6 tonnes of CO2e emissions per year compared to a standard petrol motorbike, representing a 95.83% reduction in emissions. This is a significantly higher reduction than our initial estimate.
2. Over a 10-year lifespan, each Fika electric motorbike could save about 36.36 tonnes of CO2e emissions.
3. With Fika's projected sales, the cumulative emissions reduction over the next three years (2024-2026) could reach 14,762 tonnes CO2e.
4. When accounting for 50% of charging coming from solar energy, the emissions savings increase, with a revised cumulative reduction of 15,1m tonnes CO2e over three years.
5. The emissions from battery production are relatively low (7 kg CO2e per year) compared to the operational emissions savings, which is very positive for the overall environmental impact of the electric motorbikes.

The small battery size contributes to lower production emissions, while still providing sufficient range for daily use, resulting in substantial net emissions savings.

Employment Creation

By 2029 (in 5 years), Fika will have 3500 charging stations. These will be managed by Kenyan MSMEs (Micro, Small and Medium Enterprises) which creates employment in the following ways:

• 65% (2350) will be be managed by Kenyan MSMs, of which youth and women make up 50% (1750)
• 35% (1150) will be managed by female-led MSMEs

1. Regulatory Hurdles and Compliance Requirements:
• Many African countries are still developing comprehensive electric vehicle (EV) policies, creating a complex and evolving regulatory landscape.
• In Kenya, for example, the government has introduced tax incentives for EVs, but regulations around charging infrastructure and battery disposal are still evolving.
2. Capital Intensity and Funding Requirements:
• Setting up E2W manufacturing or assembly facilities requires significant upfront investment.
• Developing a network of charging or battery swapping stations is capital-intensive.
3. Specialized Knowledge and Expertise:
• Developing E2Ws suitable for African road conditions and use cases requires specialized engineering knowledge.
• Understanding local consumer preferences, driving habits, and economic conditions is crucial for product design and marketing.
• Expertise in battery technology and energy management systems is essential for developing efficient and reliable E2Ws.

Moat

1. Proprietary Technology
• Locally designed e-motorcycles tailored for African conditions.
• F-Charge interoperable charging system compatible with multiple e-bike brands.
2. First-Mover Advantage
• Early entrant in Kenya's e-mobility market with established partnerships and infrastructure. Pioneering interoperable charging in Kenya
3. Integrated Ecosystem
• End-to-end solution covering e-motorcycles, battery swapping, and charging infrastructure.
4. Local Expertis
• Deep understanding of Kenyan market and regulatory environment.
• Strong relationships with local stakeholders, including MFIs and B2B clients.
5. Brand Recognition:
• Growing brand awareness among commercial riders and delivery companies.

Success Factors

1. Experienced Leadership
• Founding team combines entrepreneurial experience, technical expertise, and local market knowledge.
2. Innovative Business Model
• Battery-as-a-Service and F-Charge initiatives address key barriers to e-mobility adoption.
3. Market Timing
• Aligns with growing government support for e-mobility and increasing environmental awareness.
4. Scalable Technology
• F-Charge system positions Fika as a potential infrastructure leader beyond its own e-motorcycle sales.
5. Strong Partnerships
• Collaborations with MFIs, B2B clients, and potential for integration with ride-hailing and delivery platforms.
6. Focus on Total Cost of Ownership
• By addressing both upfront costs and ongoing operational expenses, Fika offers a compelling value proposition for commercial riders.
7. Adaptability
• Demonstrated ability to iterate products and business model based on market feedback and opportunities.