Arc Ride Raises $33.3 Million to Accelerate Electric Mobility Expansion

Kenyan startup Arc Ride has secured $33.3 million in funding led by Novastar Ventures and Norrsken22, marking a significant milestone for electric mobility solutions in sub-Saharan Africa.

The investment will fuel Arc Ride’s expansion across multiple markets including South Africa, Ghana, Tanzania, and Uganda. The company operates a battery-as-a-service model that eliminates the high upfront cost of batteries by allowing riders to lease motorcycles and exchange depleted batteries at convenient swap stations.

Strategic Investors Back Regional Growth

The funding round included equity investments from International Finance Corporation (IFC), British International Investment (BII), Proparco, Musashi Seimitsu, Talanton, alongside the lead investors. Debt financing was provided through BII’s Kinetic programme and Mirova.

Addressing Key Barriers to Electric Adoption

With this capital infusion, Arc Ride plans to add 5,000 electric motorcycles while strengthening its battery infrastructure with automated swapping technology and renewable energy integration. The company aims to make electric mobility more accessible by reducing cost barriers that have hindered widespread adoption.

Adapting to Diverse Markets

While Kenya has served as a testing ground for Arc Ride’s model, expansion into markets like South Africa presents new challenges. Motorcycle transport plays a different role in each country’s urban mobility landscape, requiring tailored approaches to infrastructure deployment and utilization.

Building a Sustainable Ecosystem

Arc Ride’s focus on battery swapping creates an open ecosystem that can support vehicles from multiple manufacturers—a strategic advantage as more electric motorcycle brands enter African markets. By providing universal charging access, the company seeks to accelerate the transition away from petrol-powered vehicles across the continent.