Kenyan electric mobility startup ARC Ride has raised $33.3 million in a mix of equity and asset-backed debt financing to expand its battery-swapping network and accelerate the adoption of electric motorcycles across Africa.
The funding round was led by Novastar Ventures and Norrsken22, with participation from development finance institutions including the International Finance Corporation (IFC), British International Investment (BII), and Proparco. Existing investors, including Japanese automotive supplier Musashi Seimitsu and African impact investor Talanton, also joined the round. The debt component includes financing from BII’s Kinetic programme and sustainable investment manager Mirova.
ARC Ride will use the new capital to expand its battery-as-a-service model, which allows electric motorcycle riders to access batteries through a network of swapping stations rather than purchasing batteries upfront. The approach aims to reduce one of the biggest barriers to electric vehicle adoption in Africa: the high cost of batteries.
The company plans to add 5,000 electric motorcycles to its fleet, strengthen its battery lifecycle management systems, improve automated swapping technology, and expand into new markets including Ghana, South Africa, Tanzania, and Uganda. The company is also scaling operations within Kenya, including Nairobi and other regions.
Founded in Nairobi, ARC Ride focuses on building electric mobility infrastructure rather than manufacturing vehicles. Its battery-swapping network is designed to support multiple vehicle manufacturers, including electric two-wheeler makers such as Yadea, positioning the company as a potential infrastructure layer for Africa’s growing electric transport ecosystem.
The investment highlights growing confidence in Africa’s electric mobility sector, where startups are attracting a combination of venture capital and development finance to address infrastructure challenges. With urban transport across many African cities heavily reliant on motorcycles and other two- and three-wheelers, companies like ARC Ride are betting that affordable battery access and reliable charging networks will accelerate the transition away from petrol-powered transport.
