Kenyan EV Startup Arc Ride Raises $33.3 Million to Expand Battery-Swapping Network Across Africa

Kenyan electric mobility company Arc Ride has raised $33.3 million in a funding round led by Novastar Ventures and Norrsken22, capital it will use to expand its battery-swapping network across sub-Saharan Africa and enter the South African market. The financing includes equity from the International Finance Corporation, British International Investment and Proparco, the French development finance institution, alongside existing investors Musashi Seimitsu, the Japanese automotive components supplier, and Talanton, an impact investor focused on Africa. The round also includes a debt facility from BII's Kinetic programme and Mirova, the sustainable investment manager affiliated with Natixis. Founded in Nairobi in 2020, Arc Ride operates a Battery-as-a-Service (BaaS) model, running battery-swapping stations and renting electric motorcycles to riders and logistics operators, targeting the boda boda motorcycle-taxi sector that plays a central role in Kenya's urban transport and employment. The model lowers upfront vehicle costs for riders and reduces charging downtime through rapid battery exchange. The company said it is focused on "delivering infrastructure at scale, demonstrating best-in-class unit economics and operational performance" as it positions for further continental growth. The round follows Arc Ride's earlier $10 million debt financing from Mirova in 2025 and a $5 million IFC equity commitment, as investor interest in Africa's electric two-wheeler and battery-swapping sector continues to grow.