ARC Ride, a Nairobi-based electric mobility platform, has secured $33.3 million in new financing to scale its battery swapping network and electric transport services across sub-Saharan Africa. The round was led by Novastar Ventures and Norrsken22, with participation from the International Finance Corporation, British International Investment, and Proparco. Existing investors Musashi Seimitsu and Talanton also increased their commitments, while a debt facility was provided through British International Investment's Kinetic programme and Mirova.
Funding Structure and Investor Backing
The financing combines equity investment with a dedicated debt facility, reflecting the infrastructure-heavy nature of ARC Ride's battery swapping operations and its need for physical assets. Development finance institutions joined commercial venture investors in a blended capital structure designed to support both regional growth and long-term operational stability. ICON Corporate Finance advised ARC Ride on the transaction, which ranks among the largest funding rounds ever raised by an electric mobility company in Africa.
Battery-as-a-Service Model
ARC Ride does not sell electric motorcycles or batteries outright but rents access to both through a Battery-as-a-Service model. Riders exchange depleted batteries for fully charged ones at smart swapping stations, a process that takes only minutes and avoids lengthy outlet charging. The company's stations are compatible with motorcycles made by Yadea and other original equipment manufacturers, targeting the two- and three-wheel vehicles that dominate urban transport in many African cities.
Expansion Plans and New Markets
The fresh capital will support the addition of 5,000 motorcycles to ARC Ride's fleet and deeper expansion in Kenya, including Nairobi and the country's western region. The company also plans to improve battery lifecycle management, increase swap station uptime, and advance automated swapping technology with smart charging tied to renewable energy. It will use the funding to enter four new markets: Ghana, South Africa, Tanzania, and Uganda, extending its presence across sub-Saharan Africa.
Investor Perspectives
Investors described the deal as a bet on African-built infrastructure rather than a single product, citing the importance of reliable systems for electric mobility. Novastar Ventures co-founder Steve Beck said ARC Ride is addressing one of the biggest barriers to electric mobility in Africa, which is reliable and extensive battery swapping infrastructure. Norrsken22 partner Ngetha Waithaka noted that unit economics are compelling and the product is winning with riders, while development finance backers highlighted climate and job creation benefits.
Broader Industry Context
The investment reflects a wider trend of international capital flowing into African climate and mobility startups, often through blended financing that mixes commercial venture capital with development-focused debt and equity. Existing backers Musashi Seimitsu and Talanton increased their positions in this round, signalling continued confidence from earlier investors. ARC Ride's founder Jo Hurst Croft said the funding would allow the company to scale infrastructure and make electric motorcycles the default choice for commercial riders.
ARC Ride's expansion will test whether its swap station model can succeed across different regulatory environments, electricity grids, and urban layouts. Kenya has served as the company's proving ground, but entering Ghana, South Africa, Tanzania, and Uganda adds complexity and opportunity. With one of the largest funding rounds in African electric mobility, the company now has substantial backing to pursue a cleaner and more affordable transport network across sub-Saharan Africa.