Ethiopia's electric mobility revolution just received a major boost. Dodai, the Addis Ababa-based startup focused on electric two-wheelers, has closed a $13 million Series A funding round to rapidly expand its battery-swapping network across the capital.
Notably, how this funding reflects Ethiopia's bold positioning as Africa's most aggressive electric vehicle market. The round combines $8 million in equity and $5 million in debt, attracting heavyweight investors including Value Chain Innovation Fund, UTokyo Innovation Platform Co., Nagase, Persistent Energy, For Seasons, CBC Co., Ltd, and Inclusion Japan.
Ethiopia's EV Policy Creates Opportunity
The timing could not be better. Ethiopia banned private internal combustion engine vehicle imports in 2024, then extended that ban to include gasoline and diesel trucks in 2025. This aggressive policy shift has created a captive market that Dodai is perfectly positioned to serve.
Leslie Maasdorp, CEO of British International Investment (BII), which provided debt financing, sees massive potential in this market shift. "Ethiopia is emerging as one of Africa's most compelling frontier markets for the clean mobility transition, where the right capital can unlock outsized impact and long-term value," he said.
"BII's investment will support Dodai to scale critical e-mobility and battery-swapping infrastructure, and accelerate the development of a commercial market for electric motorbikes."
Building an Integrated Model
Founded in 2023 by Yuma Sasaki, Dodai has taken an integrated approach that sets it apart from competitors. The company locally assembles both electric motorbikes and batteries while operating battery-swapping stations that eliminate charging downtime for drivers.
This model addresses a critical pain point I have observed in electric mobility adoption across Africa - charging infrastructure limitations. Since launching, Dodai has already assembled and deployed over 2,000 electric motorbikes, proving market demand exists.
Aggressive Expansion Plans
The company has ambitious scaling targets. Over the next 12 months, Dodai plans to establish 30 battery-swapping stations across Addis Ababa and reach 3,000 users. But those numbers pale compared to their three-year vision.
"This funding will help take us from early traction to real scale," Sasaki explained. "We have proven the model in Addis Ababa—now we are building the network and infrastructure needed to make electric mobility the default."
By 2027, Dodai aims to serve 30,000 users through 1,000 battery-swapping stations across the Ethiopian capital. Then comes the continental expansion phase starting in 2028, targeting major African cities including Abidjan, Kinshasa, Accra, Dar es Salaam, and Cairo.
Competition Heating Up
Dodai faces growing competition from both local players like the Belayneh Kinde Group (BKG) and Chinese manufacturers such as Yadea. However, their integrated local assembly and infrastructure model could provide a significant competitive advantage.
"We chose Ethiopia because that is where the opportunity to build from first principles really exists," Sasaki noted. "This raise allows us to double down on that bet—and show what the future of mobility in African cities can look like."
With this fresh capital injection following their $7 million raise in 2024, Dodai is well-positioned to capitalize on Ethiopia's electric vehicle mandate and potentially export their proven model across the continent. The success of this expansion could influence how other African governments approach electric mobility transitions.