Kenyan electric mobility startup Arc Ride has successfully secured a significant $5 million equity commitment from the International Finance Corporation (IFC). This crucial investment is an integral part of Arc Ride's upcoming Series A funding round, providing a substantial boost to its strategic growth initiatives.

The newly acquired funding, equivalent to approximately KSh 645 million, is earmarked for the comprehensive expansion of Arc Ride’s innovative battery-as-a-service model and its electric motorcycle infrastructure within Kenya. Beyond its immediate impact in Kenya, the investment is also designed to prepare Arc Ride for future expansion into other East African markets, specifically Rwanda, Tanzania, and Uganda, signaling the company's ambitious regional growth strategy.

Founded and based in Nairobi, Arc Ride operates a robust network of battery-swapping stations, alongside its core business of renting electric motorcycles to both individual riders and logistics operators. This distinctive business model is designed to significantly lower the upfront vehicle costs for users and dramatically reduce charging downtime through its efficient, rapid battery exchange system, addressing key barriers to electric vehicle adoption.

The International Finance Corporation emphasized that its investment in Arc Ride aligns perfectly with its overarching strategy to finance climate-focused projects within emerging markets. This commitment is expected to enhance Arc Ride's service capacity across Kenya and lay the groundwork for its planned regional expansion.

This latest equity commitment follows earlier successful financing efforts by Arc Ride. In early 2025, the company secured $5 million in loan financing from British International Investment. Later in the same year, Paris-based investor Mirova provided a substantial $10 million facility, specifically to further expand Arc Ride's vital battery-swapping infrastructure. The company has stated that this new equity backing from the IFC significantly strengthens its capital base and directly supports its ambitious growth plans.

The broader context for Arc Ride’s success lies in the increasing traction of electric two-wheelers across East Africa. Motorcycles play a central role in transportation and delivery services throughout the region. Escalating fuel costs and persistent urban air pollution have amplified interest in viable electric alternatives. Battery-as-a-service models are proving instrumental in reducing capital barriers for riders by decoupling battery ownership from the initial vehicle purchase. Furthermore, these efficient swapping systems offer a practical solution to charging constraints often encountered in urban areas with varying grid reliability.

Institutional investors are increasingly directing capital towards climate and transport assets in Africa, recognizing both the environmental imperative and economic opportunity. Development finance institutions like the IFC frequently provide essential anchor funding, which in turn acts as a catalyst to attract additional private capital into these crucial sectors. Kenya, for its part, has been proactive in introducing supportive policy measures for electric mobility, including targeted tax incentives for electric vehicles. As the sector evolves from pilot projects to widespread commercial deployment, competition is naturally on the rise among startups vying to scale their fleets and infrastructure. With the backing of the IFC and other global investors, Arc Ride is strategically positioning itself to be a leading competitor in this rapidly expanding and transformative market.