by Ghana’s Kofa, a leading clean energy startup, has raised $8.1 million to supercharge its AI-powered battery swapping network across Africa. This landmark funding marks a major leap in the continent’s transition from fossil fuels to smart, sustainable energy.
AI Battery Swapping: The Heart of Kofa’s Vision
AI Battery Swapping is revolutionizing how urban Africa powers motorcycles, homes, and businesses. Kofa’s proprietary platform uses artificial intelligence and IoT to manage millions of batteries, ensuring users get instant, reliable, and clean energy.
The system predicts demand, tracks battery health, and optimizes energy distribution. This means users can swap batteries in under two minutes, with a 99% success rate-saving time, cutting fuel costs, and keeping businesses running.
Kofa’s pre-Series A round totals $8.1 million, structured as:
- $3.25 million in equity
- $4.315 million in debt
- $590,000 in grants
The round was co-led by E3 Capital and Injaro Investment Advisors, with significant contributions from the Shell Foundation and the UK Government’s Transforming Energy Access (TEA) platform. Notably, European battery sector veteran Richard Thwaites, founder of Penso Power, also joined as a strategic investor.
Related news: African Tech Funding Declines 5% in Q1 2025, Reaching $460 Million
Expanding AI Battery Swapping Across Africa
With this new capital, Kofa will:
- Accelerate its AI Battery Swapping rollout in Ghana and Kenya
- Expand into three additional major cities across West and East Africa
- Fast-track development of its AI-driven battery management platform
- Deepen partnerships with local manufacturers, distributors, and financiers
Kofa’s asset-light model leverages special purpose vehicles (SPVs) to fund swap stations and batteries, enabling rapid scale without heavy infrastructure investment.
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Africa’s urban centers face unreliable energy grids, with generators supplying up to 40% of power in some regions. Motorcycles alone burn 40–60 billion liters of petrol annually. Kofa’s AI Battery Swapping offers a scalable, tech-enabled alternative that:
- Reduces emissions
- Cuts operating costs for riders and businesses
- Provides a reliable energy source, even during grid outages
The company’s batteries are designed for multi-use, supporting motorcycles, households, and small businesses. Kofa partners with OEMs like TailG to manufacture electric motorcycles tailored to African roads and user needs.
Also read: Kenya Claims the Top Spot In Funding
Building a Clean Energy Ecosystem
Kofa isn’t just deploying technology-it’s building an entire clean energy ecosystem. The company licenses its intellectual property, designs market-specific products, and works with partners across the value chain. Local manufacturing and assembly are key to scaling, ensuring the solution is both affordable and sustainable.
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Erik Nygard, Kofa’s CEO and founder, emphasized the broader impact:
“This funding validates our vision to transform urban Africa’s energy landscape. The shift to cleaner energy goes beyond sustainability-it drives real economic impact. For this transition to succeed, several key elements must come together.
Andrew Darge of E3 Capital added:
“Kofa stands out in having demonstrated a unique ability to build not just a product but an entire ecosystem to drive capital efficiency and create a compelling commercial opportunity for the adoption of clean energy at scale.”
The Road Ahead for AI Battery Swapping in Africa
With over 200 AI Battery Swapping operations daily and a robust technology backbone, Kofa is poised to lead Africa’s clean energy revolution. The company’s expansion will bring affordable, reliable, and sustainable power to millions, setting a new standard for urban energy solutions across the continent.
Kofa’s $8.1 million raise is more than a funding milestone-it’s a bold step toward a cleaner, smarter, and more inclusive energy future for Africa, powered by AI Battery Swapping.
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