Zembo

Zembo is an e-mobility startup headquartered in Kampala, Uganda, that is targeting the commercial two-wheeler market in Africa. The company was established in 2018 by co-founders Daniel Dreher and Étienne Saint-Sernin. The founders, one of French and the other of German nationality, brought extensive experience from working in Africa and were motivated by the heavy pollution from motorcycle taxis, or 'boda bodas', a primary mode of transport in Kampala.

The company's core business involves locally assembling and providing electric motorcycles to drivers, primarily boda boda operators, through a lease-to-own model. This model allows drivers to acquire ownership of the vehicle after a two-year payment period, which is a significant departure from the common practice of perpetual renting. Zembo's revenue is generated through these lease payments and its innovative battery-as-a-service (BaaS) component. Instead of waiting for a battery to charge, drivers can visit one of Zembo's solar-powered swap stations and exchange a depleted battery for a fully charged one in minutes. This approach significantly reduces downtime for the riders.

The product offering centers on the Zembo motorcycle, designed for durability on Ugandan roads, with parts sourced from China and assembled locally in Kampala. This local assembly strategy helps in tailoring the bikes to local conditions, improving quality control, and fostering local technical skills. By switching to electric, drivers can increase their profitability by as much as 60% after the lease period, due to savings on fuel and maintenance. The company has also developed its own in-house software for managing data and the battery swap network. A significant milestone was the establishment of Africa's first intercity e-corridor for electric motorcycles along the 120km highway between Kampala and Masaka.

Zembo has successfully raised capital to fuel its expansion. A notable Series A funding round in November 2021 secured $3.4 million from a consortium including InfraCo Africa, DOB Equity, and Mobility 54. The company aims to substantially grow its fleet of motorcycles and expand its network of battery swap stations across and beyond Kampala. The business model has a strong social and environmental impact, aiming to reduce CO2 emissions, noise, and air pollution while increasing the income and financial independence of its drivers.

Keywords: e-mobility, electric motorcycles, battery swapping, Uganda, Kampala, asset financing, lease-to-own, boda boda, sustainable transportation, clean energy, last-mile delivery, solar power, fintech, Africa, mobility-as-a-service, impact investing, renewable energy, e-bikes, green technology, urban mobility