Kenya-based mobility startup Arc Ride has secured a $5 million commitment from the International Finance Corporation (IFC) to support its expansion across East Africa. The funding aims to strengthen Arc Ride’s position as a leading provider of sustainable, app-based transportation solutions while enabling the company to scale its operations beyond Kenya.
Founded to address urban mobility challenges, Arc Ride operates a fleet of electric motorcycles and vehicles, offering riders a convenient, cost-effective, and environmentally friendly alternative to traditional transport. The startup’s platform connects drivers with passengers through a mobile app, providing real-time tracking, cashless payments, and safety features such as driver verification and emergency response protocols.
The IFC’s investment will be directed toward several strategic priorities, including fleet expansion, technology enhancements, and regional market entry. By deploying additional vehicles and improving app infrastructure, Arc Ride aims to increase service coverage, reduce waiting times, and enhance the overall customer experience. The company also plans to use part of the funding to implement driver training programs and develop incentives to attract and retain skilled operators.
According to Arc Ride’s leadership, the partnership with IFC goes beyond financial support. IFC brings expertise in sustainable transport, regulatory compliance, and operational best practices, which will help Arc Ride navigate new markets while maintaining high standards for safety and service quality. The collaboration aligns with regional goals to promote greener transportation options and reduce carbon emissions in urban areas.
Analysts note that Arc Ride’s growth comes at a time when Africa’s ride-hailing and electric mobility sectors are attracting increasing investor interest. Rising urban populations, traffic congestion, and environmental concerns are driving demand for efficient, low-emission transportation alternatives. Companies like Arc Ride, which combine technology with sustainability, are well-positioned to capture a significant share of this emerging market.
The funding also underscores the importance of public-private collaboration in accelerating infrastructure development and supporting innovative mobility solutions in Africa. By leveraging international investment and local knowledge, Arc Ride aims to create a scalable model that can be replicated across the region.
With the $5 million IFC commitment, Arc Ride is poised to accelerate its regional expansion, increase access to affordable and eco-friendly transport, and solidify its reputation as a pioneer in Africa’s sustainable mobility space. The move signals confidence in the startup’s vision and the broader potential of electric and tech-enabled transportation across East Africa.
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