Kenyan electric mobility startup ARC Ride has raised $33.3 million in asset-backed debt and equity to expand its electric motorcycle fleet and battery-swapping network across Africa. The funding will support the company’s expansion in Kenya and its entry into Ghana, South Africa, Tanzania and Uganda.
The investment comes as demand for electric vehicles grows across Africa. Kenya, in particular, has seen a sharp rise in electric vehicle adoption. Registered EVs increased nearly 30-fold between 2022 and 2025, creating a growing need for reliable charging and battery-swapping infrastructure.
ARC Ride plans to use the new funding to add 5,000 electric motorcycles to its fleet. It will also expand its battery infrastructure and invest in technologies such as automated battery swapping, smart charging and renewable-energy integration.
Founder Jo Hurst Croft said the funding would help the company make electric mobility more accessible and practical for riders. “Our ambition is to make electric mobility the default choice for riders across Africa by making it more accessible, more affordable and more practical than petrol alternatives,” he said.
Building Infrastructure for Africa’s Electric Mobility Market
ARC Ride was founded in Nairobi in 2019 and has built its business around electric two- and three-wheelers. The company designs and assembles its vehicles at its Nairobi plant while also working with technology and manufacturing partners.
Its battery-swapping model is central to its growth strategy. The company uses open-architecture and interoperable batteries, which means its system can potentially support different motorcycle brands and models. Its technology platform also tracks vehicles and battery swaps across its network.
ARC Ride said its swap stations can operate using solar power. This could help reduce dependence on the electricity grid while supporting the expansion of electric mobility in markets where reliable energy infrastructure remains a challenge.
Japanese automotive supplier Musashi Seimitsu invested in ARC Ride in 2022. The partnership has supported work on powertrain technology and components for electric two- and three-wheelers.
Norrsken22 partner Ngetha Waithaka said the company has the potential to become an important platform for the wider electric mobility sector. He described ARC Ride’s Battery-as-a-Service model as one that could become an open standard for the industry.
Expansion Brings More Competition and Opportunity
ARC Ride has already started testing its model outside Kenya. In South Africa, it piloted its battery-swapping system through the ARC Panther electric motorcycle, which was developed for local conditions.
The company has established infrastructure in Gauteng and completed a pilot in Cape Town. It has also set up an assembly plant in South Africa, produced its first batch of motorcycles for the market and completed the regulatory requirements needed to begin operations.
The $33.3 million funding round was led by Novastar Ventures and Norrsken22, with the International Finance Corporation (IFC), British International Investment (BII) and Proparco joining as co-investors. Existing investors, including Japanese automotive supplier Musashi Seimitsu and African impact investor Talanton, also committed additional capital. The financing also includes a debt facility from BII’s Kinetic programme and Mirova.
The mix of venture capital, development finance and debt gives ARC Ride funding to invest in both its technology and physical infrastructure. This is important for a business that needs motorcycles, batteries and swap stations to grow at the same time.
As more riders consider moving from petrol motorcycles to electric alternatives, reliable battery infrastructure will become increasingly important. ARC Ride’s expansion could help make electric transport more practical and affordable while supporting the development of cleaner mobility systems across African cities.
