Electric Mobility Gets a Boost: Arc Ride Raises $33.3 Million for African Expansion
Kenyan electric mobility company Arc Ride has announced a successful funding round of $33.3 million, led by Novastar Ventures and Norrsken22. This investment marks the company’s debut in South Africa and will fuel expansion across sub-Saharan Africa.
The diverse group of investors includes the International Finance Corporation, British International Investment, Proparco, Musashi Seimitsu (a Japanese automotive parts supplier), and Talanton (an impact investor focusing on African markets). The financing also incorporates debt facilities from BII’s Kinetic program and Mirova, a sustainable investment manager linked with Natixis.
Battery-as-a-Service Model Addresses Key Barriers to EV Adoption
Arc Ride’s business model offers electric two- and three-wheelers on a “battery-as-a-service” basis. Riders lease batteries instead of purchasing them outright, allowing for quick swaps at automated stations when needed. This significantly reduces the upfront cost of transitioning to electric vehicles—a major hurdle in regions where motorcycle taxis provide essential income.
The infrastructure is designed to be compatible with various vehicle manufacturers like Yadea, ensuring flexibility for riders and promoting broader adoption.
Strategic Use of Funds Planned
With this new capital, Arc Ride intends to:
- Add 5,000 electric motorcycles to its fleet
- Improve battery lifecycle management
- Enhance automated swapping technology
- Integrate more renewable energy into charging stations
- Expand operations to Ghana, South Africa, Tanzania, and Uganda
Why Investors Are Betting on Arc Ride’s Approach
Investors see value in Arc Ride’s infrastructure-focused model rather than direct vehicle manufacturing. The company aims to create a universal battery swapping standard that benefits multiple brands and riders—where network effects strengthen the entire ecosystem.
Ngetha Waithaka, partner at Norrsken22, noted that this approach could establish Arc Ride as the leading infrastructure provider for electric mobility in Africa.
Addressing Transportation Needs Across the Continent
In many African cities, two- and three-wheelers serve as critical transportation solutions due to limited public transit options. This makes electric mobility a significant climate opportunity—attracting support from development finance institutions like IFC, BII, and Proparco.
Chris Chijiutomi of BII highlighted that electric mobility is a key component of their climate investment strategy for Africa.