Pakistan’s first electric scooter-sharing service ezBike has raised $1 million in its pre-seed round from i2i Ventures, Walled City, GroupUp, and some angel investors from the US.
Founded by Mohammad Hadi, a former investment banker, and Ali Moeen, a software executive, ezBike has onboarded over 100,000 customers and become a household brand in its home city of Islamabad.
The round was raised at different valuations up to $10 million, ezBike co-founder and CEO Mohammad Hadi told DealStreetAsia.
The funds will be used to build a comprehensive ecosystem for electric two-wheelers, including an electric scooter assembly facility, low-cost lithium-ion battery production and a network of battery swapping stations.
The company will begin offering electric scooters for sale this summer and plans to initially pilot its solution with one of Pakistan’s leading delivery companies.
The vertically integrated electric mobility startup plans to accelerate Pakistan’s transition to EVs.
“We have been studying electric mobility globally for the last few years and seen the potential in leveraging EV-sharing technology to provide the most affordable, convenient and environmentally-friendly form of transportation available in the country,” said Hadi.
With 22 million legacy motorcycles, Pakistan represents a $20-billion market opportunity for two-wheel electric vehicles, Hadi added.
However, despite favourable policies, the transition to EVs has not been smooth for Pakistan considering the depreciating rupee and associated costs.
In order to tackle the problem, Hadi said ezBike plans to make EV scooters financially accessible by allowing consumers to purchase electric scooters for 80% of the price of comparable petrol motorcycles and operate them at 50% of the cost. “This will revolutionise the market,” he believes.
“Our experience assembling, operating and maintaining electric scooters and battery-swapping stations at scale since 2020 has made us uniquely well-positioned to drive the transition to EVs in Pakistan,” said Moeen, co-founder and CTO/COO of ezBike.
ezBike, being the only contender in this segment, for now, enjoys a unique opportunity. Pakistan recently ranked as having the second-worst air quality in the world. The World Bank estimates annual economic losses to the Pakistani economy caused by ambient air pollution to exceed $1 billion.
With an estimated 65% of emissions attributable to transport and motorcycles, there is an urgent need to drive the transition to electric scooters.
i2i Ventures co-founder and GP Misbah Naqvi said, commenting on the investment, ezBike is addressing the urgent and significant issue of climate change and pollution in Pakistan, while providing consumers affordable options to purchase and operate electric scooters.