Kofa Holdings, an energy technology company based in Ghana and the UK, has successfully secured significant seed stage funding to advance its mission of providing clean energy access to 10 million customers across Africa and offsetting 10 million tonnes of CO2 annually. Leading the funding round are Mercy Corps Ventures, Shell Foundation, the UK’s FCDO (Foreign, Commonwealth & Development Office), and Wangara Green Ventures, along with several prominent angel investors.
The primary objective of Kofa Holdings is to address the challenges of energy affordability and accessibility, specifically in the areas of mobility and logistics, which present significant barriers to scaling local businesses. As oil and gas prices continue to rise and blackouts persist, the need for resilient energy systems for consumers and small enterprises has become crucial.
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This funding will empower Kofa to expedite its expansion into multiple cities across Ghana, utilizing its improved second-generation products. These products align with the company’s vision of establishing an affordable, sustainable, and customer-centric electricity network based on swappable batteries.
Africa is home to approximately 30 million moto-taxis, which collectively spend a staggering $100 billion annually on fuel, amounting to $11 per day per bike. Kofa recognizes the tremendous opportunity to transition these riders to electric bikes. The company aims to provide customers with clean and affordable energy solutions through a portable battery network capable of powering various use cases. By introducing an innovative battery-as-a-service model, Kofa intends to drive the shift from fossil fuels in the mobility and generator sectors, resulting in a substantial reduction in CO2 and greenhouse gas emissions. Fossil fuels currently account for over 75% of global greenhouse gas emissions and nearly 90% of all carbon dioxide emissions, making them significant contributors to the greenhouse effect.
Starting with mobility, Kofa offers a smart solution to convert Africa’s 30 million+ gas-powered motorbikes into electric vehicles (EVs), while also providing customers with additional applications for the battery throughout its lifespan. These applications include serving as a grid backup at home, providing a grid alternative in suburban shops to power retailer appliances, and more.
Kofa’s battery swap-and-go services enable users, such as motorcycle riders, to conveniently exchange depleted batteries for fully charged ones at strategically located charging stations in key areas within major Ghanaian cities. With an ambitious goal of actively reaching 10 million customers across Africa through its battery network, Kofa aims to offset 10 million tonnes of CO2 annually by displacing petrol consumption.
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Toffene Kama, Investment Principal at Mercy Corps Ventures, highlights the transformative potential of Kofa’s wireless energy solutions. Kama states, “These batteries are packets of energy going cableless, just like the mobile phone went wireless and conquered the whole of Africa a decade ago.”
With the initial funding, Kofa intends to demonstrate the viability of its intelligent battery-swapping network and establish a solid foundation for future growth. By successfully achieving its mission, Kofa anticipates making a positive impact on millions of lives while delivering approximately $2 billion in annual customer savings.
Kofa Holdings Kofa Holdings
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard