Ethiopia’s Dodai secures $4 million Series A amid the government’s push to ban all fuel vehicles in the region. Dodai, an electric vehicle manufacturing company headquartered in Addis Ababa, Ethiopia, has recently received $4 million in Series A funding from Nissay Capital, Musashi Seimitsu, and Inclusion Japan to support its growth efforts.
Dodai Secures $4 Million Series A
80% of the recently secured $4 million in Series A funding by Dodai, an electric vehicle manufacturer based in Addis Ababa, Ethiopia, will be allocated to acquiring electric motorcycle parts and lithium batteries. The remaining 20% will cover operational expenses and software development. Dodai plans to introduce a battery-swapping system by the end of 2024.
This development coincides with Ethiopia’s government initiative to promote green transportation by phasing out fuel-powered vehicles in the country. Dodai, a Japanese EV startup in Ethiopia, is contributing to this green transition by assembling and selling electric motorcycles. Out of 1.2 million cars in Ethiopia, Dodai currently has 7,200 electric vehicles (EVs) on the roads.
Dodai’s Development Since Its Inception
Since its establishment in 2023, Dodai, led by Yuma Sasaki, has raised a total of $6.2 million, including the recent funding round. This investment marks one of the largest funding rounds for Ethiopian startups.
Dodai’s electric bikes boast a range of up to 150 km per charge, with lithium batteries designed to last up to eight years. Additionally, Dodai offers short-term scooter rentals to its customers.
Musashi Seimitsu’s Collaboration with Dodai
Musashi Seimitsu, a Japan-based automotive parts supplier, views its collaboration with Dodai as strategic, aiming to address regional mobility challenges and expand its e-mobility business in Africa. Future plans include developing EV scooters based on Musashi’s e-Axle technology, launching three-wheeled vehicle products, and data collaboration.
Ethiopia’s Government’s Decision to Exclusively Allow EVs into the Country
In February 2024, Alemu Sime, the Ethiopian Minister of Transport and Logistics, announced the government’s decision to exclusively allow EVs into the country, banning gasoline and diesel-powered vehicles.
This move aligns with Ethiopia’s Logistics Master Plan, emphasizing “Green Transport” initiatives. Furthermore, the government plans to establish EV charging stations and provide tax exemptions for electric cars starting in 2022.
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