Electric mobility company ARC Ride has raised $33.3 million from venture capital firms, development finance institutions and impact investors as it seeks to expand battery-swapping infrastructure and electric two- and three-wheelers across Africa.
The financing was led by Novastar Ventures and Norrsken22, with the International Finance Corp., British International Investment and Proparco participating. Existing investors Musashi Seimitsu Industry Co., a Japanese automotive supplier, and African impact investor Talanton also committed additional capital.
The round includes debt from BII’s Kinetic program and Mirova, giving ARC Ride a mix of equity and asset-backed financing to fund what is a capital-intensive expansion.
ARC Ride plans to use the funding to expand its operations in Kenya and enter or scale in markets including Ghana, South Africa, Tanzania and Uganda. The company also plans to add 5,000 electric motorcycles to its fleet.
The Nairobi-based company operates a Battery-as-a-Service model in which riders can exchange depleted batteries at swap stations rather than purchase and maintain the batteries themselves. The approach is designed to reduce the upfront cost of switching from petrol-powered motorcycles while limiting downtime for commercial riders.
ARC Ride says its battery-swapping network is used by electric-vehicle manufacturers including Yadea.
The company is targeting Africa’s large motorcycle and three-wheeler markets, where motorcycles are a critical part of urban transportation and informal logistics but also contribute significantly to fuel consumption and air pollution.
ARC Ride will also invest in battery lifecycle management, network reliability, automated battery swapping, smart charging and integration of renewable energy.
“This funding reinforces our vision of building a robust, scalable energy and mobility network across Africa,” founder Jo Hurst Croft said in a statement. The company aims to make electric mobility more accessible and affordable than petrol alternatives, she said.
The investment comes as electric-mobility companies across Africa seek to solve the infrastructure and financing challenges that have slowed adoption of electric motorcycles. Battery swapping has emerged as an alternative to conventional charging, particularly for commercial riders who cannot afford long periods of vehicle downtime.
For investors, ARC Ride’s combination of vehicle financing, battery infrastructure and energy services offers exposure to several parts of the emerging electric-mobility market.
“ARC Ride is helping solve one of the biggest barriers to electric mobility in Africa: reliable, extensive battery-swapping infrastructure,” said Steve Beck, co-founder and managing partner at Novastar Ventures.
Norrsken22 partner Ngetha Waithaka said ARC Ride’s technology, data and network could give it the potential to become an open platform for the wider electric-mobility ecosystem.
ARC Ride’s expansion will initially deepen its presence in Kenya, including Nairobi and the western region, before extending its infrastructure footprint across additional African markets.
BII, one of the investors in the round, said the investment supports its climate strategy while helping build infrastructure needed for electric-vehicle adoption.
“Electric mobility is essential to building cleaner, more sustainable transport across Africa,” said Chris Chijiutomi, BII’s managing director and head of Africa.
ICON Corporate Finance acted as ARC Ride’s sole financial adviser on the transaction.
The latest financing gives ARC Ride additional capital to scale its network while testing whether battery swapping can achieve the operational efficiency and economics required for mass-market electric mobility in Africa.