Dodai, a prominent electric vehicle (EV) company based in Ethiopia’s capital, Addis Ababa, recently raised $4 million in Series A funding. This investment, one of the largest ever for an Ethiopian startup, will fuel the company’s growth and expansion plans.
With origins in Addis Ababa, Dodai is electrifying Africa’s urban landscapes with innovative electric motorcycles, locally designed and manufactured.
The funding round was led by prominent investors, including Nissay Capital (he corporate venture capital arm of Nissay, a $500 billion asset insurance and asset management company, making its first investment in Africa), and Musashi Seimitsu, (a $3 billion revenue automotive parts supplier). Inclusion Japan (ICJ), a Tokyo-based venture with a $100 million fund, also joined as a returning investor, having previously invested in Ethiopian startups such as Gebeya, GoodayOn, and Addis Software.
The capital injection will primarily import electric motorcycle parts and lithium batteries (which are crucial components for Dodai’s core business), while a substantial amount of the funds will be allocated towards operational expenses and developing a battery-swapping system targeted for launch by the end of 2024.
Dodai’s focus on electric motorcycles aligns with Ethiopia’s growing emphasis on clean energy initiatives. The Ethiopian government recently announced a bold move to ban fuel-powered vehicles in the country, further solidifying the potential of EVs in the region.
Founded in 2023 by Yuma Sasaki, Dodai e-Bikes boast an impressive range of 150 kilometers per charge, with lithium batteries lasting up to eight years. Additionally, Dodai offers short-term electric scooter rentals, catering to a diverse customer base.
BACKGROUND
This latest equity funding brings Dodai’s total raised capital to $6.2 million since its inception, with the startup aiming to secure an additional $2 million in its Series A round.
In February 2024, the Ethiopian Minister of Transport and Logistics, Alemu Sime, announced the government’s decision to allow only EVs into the country. The move places a ban on gasoline and diesel-powered cars. The announcement follows the completion of Ethiopia’s Logistics Master Plan, involving the implementation of “Green Transport” in the country.
Owners of fossil fuel-powered vehicles must also submit their vehicles to stringent smoke tests; those that do not pass will have their licences revoked.
The government had committed to establishing EC charging stations and to exempt electric cars from value-added tax (VAT), excise tax, and surtaxes, effective in 2022.