Nairobi-Based EV and Battery-as-a-Service Pioneer ARC Ride Secures $33.3 Million in Combined Equity and Debt Financing
Kenyan electric mobility leader ARC Ride has closed a massive $33.3 million funding round backed by a consortium of top-tier venture capital firms and international development finance institutions to scale its pan-African operations.
NAIROBI — Nairobi-headquartered electric mobility and battery-as-a-service (BaaS) platform ARC Ride has officially secured $33.3 million in a combined equity and debt financing round. The capital injection marks a major milestone for the clean transportation sector in East Africa, validating the commercial viability of scalable battery-swapping infrastructure across urban markets.
The funding round was co-led by prominent venture capital firms Novastar Ventures and Norrsken22, with participation from major development finance institutions including the IFC - International Finance Corporation, British International Investment, and Proparco. Additional capital was supplied by existing strategic backers, including Japanese Tier-1 automotive supplier Musashi Seimitsu Industry Co., Ltd. and impact investor Talanton.
Scaling Battery-as-a-Service Infrastructure
As urban centers across Africa grapple with rising fuel costs and environmental pressures, ARC Ride has positioned itself at the forefront of the green transition. The company's innovative battery-as-a-service model enables commercial drivers, particularly motorcycle taxi (boda-boda) operators, to swap depleted batteries for fully charged ones in a matter of seconds, drastically reducing downtime and eliminating upfront battery ownership costs.
The newly secured $33.3 million will be deployed to expand ARC Ride's network of automated swapping stations, scale its fleet of electric two-wheelers, and deepen its supply chain integration. By partnering with global manufacturing leaders like Musashi Seimitsu, the company continues to bolster its technical capabilities and operational resilience.
The strong participation of heavy-hitting development finance institutions underscores the systemic importance of electrified public transport in curbing carbon emissions and driving green job creation across the continent. With robust institutional backing and seasoned venture capital partners at the table, ARC Ride is primed to cement its market leadership and accelerate urban e-mobility adoption throughout East Africa and beyond.
Learn More at: https://www.proparco.fr/en/news/kenya-proparco-invests-usd-15-million-arc-rides-funding-round-accelerate-electric-mobility
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