Kofa, the tech energy company and end-to-end ecosystem enabler, has announced the close of an $8.1 million pre-Series A funding round. The investment, comprising $3.25 million in equity, $4.315 million in debt, and $590,000 in grants, will fuel the company’s expansion and supercharge its AI-powered battery-swapping network, delivering reliable, clean energy solutions to urban Africa, starting in Ghana and Kenya.
The round was co-led by E3 Capital, one of Africa’s largest early-stage climate-tech venture capital funds, and Injaro Investment Adrvisors. ShellFoundation contributed to the raise through catalytic debt and grant, co-funded with the UK Government through its Transforming Energy Access (TEA) platform. The fund also features backing from high-profile European angel investors in the battery industry, including Richard Thwaites, founder of Penso Power, one of Europe’s leading grid scale battery businesses, acquired by BW Group in Oct 2024, who brings strategic insights into the battery sector.
This funding round will accelerate Kofa’s expansion into three major cities across West and East Africa. It will also fast-track the development of its proprietary AI-driven battery management platform, a game-changing differentiator crucial for optimising and scaling its network to efficiently manage millions of batteries.
Since its inception in 2022, Kofa has rapidly become a driving force in the clean energy sector. The company has developed a swappable battery network that provides reliable, clean energy for motorcycles, households, and small businesses. Leveraging its cutting-edge technology and proprietary Internet of Things (IoT) system – which tracks battery usage, predicts demand, and optimises energy distribution – Kofa now facilitates over 200 battery swaps daily, achieving a 99% charge rate with an average swap time of under two minutes; saving time, reducing fuel costs, and keeping businesses running reliably.
Headquartered in Accra, Ghana, Kofa’s innovative model extends beyond battery swapping and has established itself as an end-to-end enabler of the broader energy ecosystem. By empowering connections with manufacturers, distributors, and financiers, Kofa is driving the large-scale adoption of clean energy solutions across urban Africa. Its holistic approach also facilitates the creation of jobs, strengthens local economies, and enables users to increase their income through more efficient energy solutions.
Erik Nygard CEO and Founder of Kofa said, “This funding validates our vision to transform urban Africa’s energy landscape; and we are committed to building the ecosystem necessary to make this a reality. The shift to cleaner energy, for both domestic and commercial use, goes beyond sustainability – it drives real economic impact but for this transition to succeed, several key elements must come together”.
As an end-to-end enabler, Kofa designs market-specific products and licenses its intellectual property to key industry players. This is exemplified through its partnership with TailG, a global OEM, to mass-produce Kofa’s electric motorcycle design – developed with direct user input, making it one of the first fully bottom-up electric motorcycle designs for Africa. Operating under a technology-first, asset-light model, Kofa is reshaping the future of energy by leveraging a Special Purpose Vehicle (SPV) to finance critical infrastructure such as batteries and swap stations, ensuring scalable growth, while also partnering with trusted distributors like AutoPax in Kenya and soon to be announced partnerships in Ghana to expand market reach.
Andrew Darge, E3 Capital’s lead on the transaction, commented: “In investing in Africa for over a decade, we have seen firsthand the evolution of Africa’s distributed renewable energy sector – and in particular the rise of electric mobility and battery technologies. Kofa stands out in having demonstrated a unique ability to build not just a product but an entire ecosystem to drive capital efficiency and create a compelling commercial opportunity for the adoption of clean energy at scale. Their approach aligns with our mission to support low-carbon solutions that catalyse measurable, sustainable impact across Africa.”
Jerry Parkes, Managing Director of Injaro Investment Advisors, commented, “Our investment in Kofa is about more than just backing a promising energy company, it’s about supporting a solution that delivers tangible economic benefits for local communities. We are also excited to deploy Ghanaian capital in support of a visionary and experienced founder driving sustainable energy innovation in Africa. This makes Ghana an active participant in the achievement of a cleaner, more sustainable future while giving Ghanaian pensioners exposure to investment opportunities previously accessible mainly to international institutions”.
“Shell Foundation supports solutions that raise incomes for everyday people in key sectors, while simultaneously lowering emissions,” shared Jonathan Berman, CEO of Shell Foundation. “Kofa’s technology has huge potential for scale, and it is exciting to see this fundraise accelerate the expansion into new cities and national markets.”
