Kenyan electric mobility company ARC Ride has raised $33.3 million in new financing as it prepares to expand its battery-swapping business beyond Kenya and deepen its presence across Africa. The funding round was led by Novastar Ventures and Norrsken22, with participation from the International Finance Corporation (IFC), British International Investment (BII), Proparco and existing investors.
The investment comes as demand for electric motorcycles grows across Africa, particularly among commercial riders who depend on two-wheelers for their livelihoods. ARC Ride operates a Battery-as-a-Service model that allows riders to exchange depleted batteries for fully charged ones at automated swapping stations. This removes the need for riders to wait for lengthy charging periods and can also reduce the upfront cost of adopting an electric motorcycle.
ARC Ride’s model has already gained traction in Kenya. The company has built a network of battery-swapping stations and service hubs, particularly in Nairobi and Nakuru. IFC said its planned investment would help the company increase network density and service capacity in Kenya while supporting expansion into new African markets and improving its technology capabilities.
With the latest funding, ARC Ride plans to add about 5,000 electric motorcycles to its fleet while expanding its battery-swapping infrastructure. The company also intends to improve battery management, automated swapping technology and the integration of renewable energy into its operations. Its expansion plans include markets such as Ghana, South Africa, Tanzania and Uganda.
The financing is significant because battery-swapping networks require substantial investment in both physical infrastructure and batteries. ARC Ride’s fundraising combines venture capital with development-finance backing and debt financing, highlighting growing institutional interest in Africa’s electric-mobility sector. Mirova previously committed up to $10 million in senior secured debt to support the deployment of more than 600 swapping cabinets and 25,000 batteries in Kenya.
For motorcycle riders, the expansion could make electric transport more practical. Fuel costs are a major expense for many commercial riders, while access to reliable charging remains a challenge. Battery swapping offers a way to keep vehicles operating with minimal downtime, potentially improving earnings and reducing operating costs.
ARC Ride’s expansion also reflects a broader shift in Africa’s transport industry. As governments and investors seek alternatives to petrol-powered vehicles, companies are increasingly building the infrastructure needed to support electric mobility at scale.
The $33.3 million investment therefore represents more than a funding boost for one Kenyan startup. It signals growing confidence that battery swapping can become an important part of Africa’s transport infrastructure, while giving ARC Ride the capital it needs to take its Kenyan model into more markets across the continent.
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