Electric mobility startup ARC Ride has raised US$5 million in new financing to deploy 5,000 electric two-wheelers and expand its battery swapping infrastructure, marking a major step toward sustainable transportation in the country.
- •The funding, backed by British International Investment (BII), is aimed at electrifying the ubiquitous Boda Boda sector that forms the backbone of Kenya’s urban and peri-urban transport network.
- •The move is expected to cut over 100,000 metric tonnes of carbon emissions annually by shifting from petrol-powered bikes to electric alternatives.
- •The investment is part of a broader push to modernize Nairobi’s transportation system while addressing environmental concerns, as statistics reveal the transport sector is responsible for approximately 13% of Kenya’s greenhouse gas emissions.
“This investment compliments the UK’s effort in supporting the decarbonisation of the Nairobi transport system,” said Daniel Wilcox, the Economic Counsellor of the British High Commission in Nairobi.
ARC Ride, which has been active in piloting battery swapping stations and leasing electric motorcycles to riders, plans to use the funds to scale its operations and solidify its presence in East Africa’s growing e-mobility sector. The company aims to capitalize on a rising demand for affordable, clean transport options in fast-growing cities.
“This strategic partnership between ARC Ride and BII marks a significant milestone in our ongoing efforts to expand scale and expand our Pan African footprint,” said Joseph Hurst, CEO — ARC Ride.
ARC Ride assembles its EVs locally and sources various components from regional manufacturers. The startup was established in 2019.
In October last year, BII provided a US$7.5 million loan to BasiGo, an e-mobility firm that aims to revolutionize public transport in Nairobi and Kigali.
