Zeno raises $25 million to accelerate production of its battery-swap motorcycles

The shift to electric vehicles may have hit a snag in the United States, but it’s not slowing down in East Africa, where several startups are vying for a piece of the booming electric motorcycle market.

Zeno is one of those companies, and this week announced a $25 million Series A to expand its app-controlled battery swap network and produce more of its Emara motorcycles.

About $20.5 million of the total was equity fundraising, Michael Spencer, co-founder and CEO of Zeno, told TechCrunch. It was led by Congruent Ventures with participation from Active Impact and Lowercarbon Ventures. The remaining $4.5 million is debt facilities from Camber Road and Trifecta Capital.

Zeno had previously raised a $9.5 million seed round led by Lowercarbon Ventures and Toyota Ventures.

Since emerging from stealth a year and a half ago, Zeno has built more than 800 Emara motorcycles and established more than 150 charging sites in four East African countries.

Motorcycles are a cornerstone of transportation in the region, and Zeno is betting they can attract commuters by offering running costs 50% lower than internal combustion bikes. The company said that more than 25,000 retail and fleet customers are waiting to obtain an Amara bike, and that it produces about 70 to 80 bikes per week. The new round will be used to meet this demand.

Zeno says the car can travel about 100 kilometers (60 miles) on a single charge and can carry up to 250 kilograms (550 pounds). The bike sells for about $1,300 without a battery, and about $2,000 with it.

The bike delivers 8 kilowatts of maximum power, roughly equivalent to a 150cc internal combustion engine, but because all the torque is available from a standstill, it can climb steep hills fully loaded – a boon for bodaboda operators, who routinely transport passengers and cargo on bikes.

Customers who ditch the battery with purchase can sign up for a monthly or pay-per-use plan. They can charge bikes at home or at one of Zeno’s swap stations.

Similar to Slate Auto in the US, Zeno sells a range of accessories and covers so buyers can customize their cars.

To sweeten the deal, Zeno also plans to offer a battery base that homes and businesses can use to power lights and appliances. The tub is currently being prototyped, and about a dozen customers are testing the product, Spencer said.

If Zeno can commercialize the battery base, it could embed itself in the region’s electrical infrastructure. Much of East Africa’s electricity grid is in poor condition, which has presented an opportunity for companies to offer more standardized energy products. Some are helping to develop micro and microgrids, while others like Zeno are betting that portable modular batteries will always find a place.

When Spencer co-founded the company, he was inspired by his former employer, Tesla, and its first master plan, which sought to deploy electric vehicles and clean energy on a large scale. He told me in 2024 that the idea “has more support and more room to implement with fewer hurdles in emerging markets.”