Our Investment in Zeno
Comprehensive electric mobility ecosystem
The commuter motorcycle market is enormous, with an estimated 600 million vehicles currently on the road globally, and projections reaching 1.5 billion by 2040. Most of this growth will come from emerging economies, where rising demand for affordable, accessible transportation combined with rapid urbanization fuels the growing need for 100-200cc motorbikes.
While drivers prefer electric options, regions like India and East Africa remain dominated by petrol-powered bikes. Despite these bikes' high fuel cost and environmental impact in densely populated areas, petrol-powered models are often more affordable upfront than electric alternatives. At MCJ, we understand that without electric options matching the upfront cost, performance, and practicality of petrol-powered bikes, transitioning is difficult, if not impossible, for those who rely on them for their livelihoods.
That’s where Zeno comes in. The company is developing a 100-200cc equivalent electric motorcycle designed to compete directly with today’s most popular internal combustion engine models. Zeno uses a battery-as-a-service subscription model, allowing customers to purchase the motorcycle upfront and subscribe to access both the battery and Zeno's charging network. MCJ is excited to participate in Zeno’s Seed round, alongside firms such as Lowercarbon, Toyota Ventures, and others. Keep reading to see why we’re thrilled to support Michael Spencer and the team at Zeno as they address the electric 2-wheel mobility and energy gap in emerging markets.
What is Zeno?
Zeno is creating a comprehensive electric mobility ecosystem from the ground up. Serving emerging markets like India and East Africa, Zeno’s product features a 100-200 cc equivalent entry-level sport utility electric motorbike engineered to rival today’s top commuter motorcycles in every aspect. Zeno’s proprietary battery-as-a-service model allows riders to avoid the high upfront cost of purchasing a bike with a built-in battery. The company’s cloud-managed swap network ensures riders have seamless access to a dependable and flexible multimodal charging system, including battery swapping, public fast charging, and at-home slow charging options. This eliminates the wait time for recharging, reduces downtime, and increases reliability, making it easier for riders to stay on the road and boost their earning potential.
The primary audience for Zeno’s first product is motorbike taxi drivers, known as boda drivers in East Africa, who often cover up to 150 km daily on rugged terrain while transporting heavy loads. Current electric options are limited: low-quality pedal-assisted bikes struggle with durability, hills, and load capacity, while premium electric bikes come with built-in batteries that increase costs, require long charging times, and often need financing. Zeno provides a superior solution—offering better quality and affordability than both the low-end and premium electric alternatives, while enhancing the riding experience compared to gas-powered bikes.
Why Did We Invest?
Competitive Landscape
Most companies tackling two-wheel electric mobility today focus on e-bikes or lower-end scooters or mopeds, however, we believe the real market opportunity lies in the 100-200cc commuter motorcycle segment. Despite accounting for 60-80% of the global market, this segment is underserved in terms of electric options. Zeno is poised to fill this gap by leveraging advancements in battery technology and its innovative battery-as-a-service subscription model, which makes electric motorcycles more cost-competitive with gas-powered models. By targeting this segment in emerging markets like East Africa and South Asia, Zeno has the potential to capture significant market share and become a key player in the global shift toward sustainable mobility.
Economic and Quality of Life Benefits
Electric motorbikes present a significant opportunity for economic uplift and improved quality of life, especially for commercial motorbike taxis in emerging markets. Transitioning to electric motorbikes offers significant cost savings, enabling drivers to increase their take-home income by up to 50%. As a result, drivers can see an immediate improvement in their economic stability and the ability to support their families.
Beyond individual economic benefits, electric motorbikes also contribute to public health. With a reduction in air pollution compared to traditional motorbikes, the shift to electric options reduces the harmful emissions that contribute to respiratory issues and other health problems. Cleaner air leads to better health outcomes for entire communities, which is crucial in densely populated urban areas where pollution levels are particularly high.
Furthermore, Zeno’s battery infrastructure could serve as a decentralized energy source. Their distributed network of batteries could be leveraged to provide grid services through a virtual power plant, or backup power to those without reliable access to electricity. This power can used for essential activities like cooking, lighting, and other household needs, raising the overall standard of living.
Compelling Founder-Market Fit
Zeno’s Founder and CEO, Michael Spencer, brings a decade of experience in building climate-focused businesses across East Africa, the U.S., and Europe. Most recently, he led Model 3 production ramp-up, supercharger network deployment across the U.S. and Europe, and home energy product launch at Tesla. His previous ventures include developing affordable, sustainable housing, turning around a conservation and regenerative agriculture business, and founding two affordable healthcare companies in Kenya.
But Michael doesn’t operate alone. He has assembled a highly skilled team capable of bringing a challenger brand to market from scratch and driving sales. Michael has attracted some of the industry’s top talent, from several engineering leaders at India’s largest electric two-wheeler OEMs to executives from East Africa’s largest ride-hailing companies. We believe this team not only has the market know-how but also the technical and logistical chops to tackle the complex challenge of battery swapping logistics—an essential component to making electric mobility reliable and scalable in emerging markets. We’re excited to watch this team grow!
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