Dodai, an Ethiopian Electric vehicle startup has successfully secured $4 million in Series A funding for its operation and expansion.
This development is coming just after the Ethiopian government made a move to ban fuel-powered vehicles as the Eastern African country launched the green initiative.
The Japanese electric vehicle and motorcycle manufacturer based in Addis Ababa, Ethiopia is currently involved in assembling and selling electric motorcycles.
The company already has seven thousand, two hundred electric vehicles (7,200 EVs) out of about one million, two hundred (1.2 M) cars they currently have in Ethiopia.
Dodai’s electric motorcycles can travel up to one hundred and fifty kilometres (150 KM) on a single charge with the use of lithium batteries that can last up to eight years.
Additionally, the EV startup also offers the service of providing short-term scooter rentals to its clients.
In 2023, the EV startup, founded by Yuma Sasaki, made significant progress in raising six million and two hundred thousand dollars ($6.2 M), including the recent funding round.
This investment has possibly broken a record of being one of the highest amounts accumulated by any Ethiopian startup in a single round.
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What Does This Investment Mean For Dodai and the Mobility Industry in Ethiopia?
Dodai aims to use the funds raised to expand while fostering innovation in the Ethiopian mobility industry.
Electric motorcycle parts and lithium batteries will be brought in with eighty per cent (80%) of the funds that were raised while the remaining twenty per cent (20%) will directed into operational expenses and software development.
Before the end of the year, Dodai also aims to launch a battery-swapping system.
Musashi Seimitsu, a prominent automotive parts supplier in Japan made a strategic to collaborate with and invest in Dodai. This collaboration is seen as a crucial step towards addressing prevalent mobility challenges within Ethiopia.
By forging this partnership, Seimitsu aims to play a pivotal role in the advancement of e-mobility solutions and the broader automotive industry.
Moreover, the company’s investment also signifies a commitment to fostering innovation and supporting the development of sustainable transportation solutions in the African market.
With a keen focus on expanding its footprint in the electric vehicle (EV) sector, Seimitsu intends to introduce a range of cutting-edge EV solutions tailored to meet the specific needs of African consumers.
Through collaborative efforts and investments, he envisions a future where sustainable transportation solutions address environmental concerns and enhance overall mobility experiences for individuals and communities across Africa.
The forthcoming collaborations between these two electric vehicle enterprises are set to encompass a wide array of projects aimed at advancing the adoption and innovation of electric vehicle solutions.
Among the key initiatives on the agenda are the joint efforts in designing and developing electric scooters leveraging Musashi’s cutting-edge e-Axle technology.
This collaboration is poised to bring forth a new generation of electric scooters that are not only energy-efficient but also equipped with state-of-the-art features for enhanced performance and sustainability.
Furthermore, the partnership will extend to the launch of innovative three-wheeled vehicle products, catering to diverse transportation needs and preferences.
By combining their expertise and resources, the two companies aim to introduce versatile and eco-friendly three-wheeled vehicles that align with the growing demand for sustainable mobility solutions.
This ushers in a new era of transportation in Africa, where vehicles that are eco-friendly and tailored to the African markets are manufactured and used widely.
Additionally, data-sharing initiatives will form a crucial part of their collaborative endeavours, enabling the seamless integration of smart technologies and data-driven insights into their electric vehicle offerings.
FinTech Telex Alemu Sime, the Ethiopian Minister of Transport and Logistics, shared the government’s decision to allow only EVs into the country as of February 2024.
The implementation of this new policy forces owners of fossil fuel-powered vehicles to submit their vehicles to stringent smoke tests and threatens the revocation of licences for those who fail to participate.
