Société Générale, a prominent French banking group, has disclosed its involvement in a substantial $60 million funding arrangement aimed at bolstering the growth of Spiro, an innovative startup headquartered in Cotonou, Benin. Spiro, which focuses on electric motorcycle leasing services, plans to channel this financial infusion towards the expansion of its offerings.
The funding initiative, reported to be a collaboration between Société Générale and Spiro, is set to catalyze the evolution of the electric motorcycle sector in Benin. Spiro, operating under the M Auto brand, has gained traction among motorcycle-taxi drivers, providing them with an accessible and attractive business model. This funding is anticipated to enable the acquisition of additional electric motorcycles through a gradual payment structure, thus facilitating the entrance of new entrepreneurs into this mobility-driven enterprise.
Notably, GuarantCo, a specialized financial institution with expertise in local currency debt operations with foreign capital, is also partaking in the funding arrangement alongside Société Générale. Although specific details regarding the transaction remain undisclosed, the financing is projected to cover not only motorcycle acquisition costs but also encompass repair warranties and the availability of spare batteries. This comprehensive approach addresses the evolving needs of electric motorcycle users and promotes sustainable mobility solutions.
The timing of this funding initiative aligns strategically with the evolving landscape of transportation in Benin. The surge in fuel prices, coupled with heightened concerns about environmental sustainability, has propelled the demand for electric motorcycles. Spiro’s M Auto brand positions itself as a viable alternative, offering daily rental options and a range of inclusive services that appeal to both individuals and professionals.
This substantial funding marks the second reported fundraising round for Spiro in the current year. The startup had previously secured $20 million from the Africa Transformation and Industrialization Fund, an investment entity headquartered in Abu Dhabi, United Arab Emirates. The collective support from diverse financial backers underscores the compelling potential of Spiro’s business model and its alignment with the region’s goals of reducing pollution and fostering economic growth in the face of rising inflation.
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Société Générale’s strategic involvement in Spiro’s funding deal exemplifies a concerted effort to drive sustainable and green mobility solutions in the West African context. As the electric motorcycle sector gains momentum as a promising avenue for innovation and economic development, this partnership holds the promise of reshaping transportation paradigms and benefiting various stakeholders within the region.
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