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Kenyan clean-transport startup Arc Ride has secured a $5 million equity commitment from the International Finance Corporation (IFC), the private investment arm of the World Bank Group, to support its plans to expand across East Africa.
The funding, announced as part of preparations for Arc Ride’s Series A financing round, comes as interest among global investors in e-mobility and climate solutions on the continent grows.
Launched in Nairobi in 2019 by founder Joseph Hurst-Croft, Arc Ride operates a Battery-as-a-Service (BaaS) model aimed at lowering the cost of electric motorcycles to accelerate their use among riders who depend on boda bodas and delivery fleets.
Instead of buying an electric bike with its expensive battery included, customers purchase the vehicle and lease batteries separately.
They then swap depleted packs for fully charged ones at stations installed in everyday locations such as petrol stations, shops and warehouses, a strategy the startup says makes electric transport more practical and affordable.
According to IFC disclosures, the planned investment “proposes an equity investment of up to $5 million to support Arc Ride’s Series A financing round, which aims to scale network density and service capacity in Kenya; support expansion into new markets across Africa, and strengthen technology capabilities through Research and Development (R&D) and incremental upgrades to internationally compliant standards.”
Arc Ride has already attracted significant backing from other climate-focused investors.
Earlier funding includes a $5 million debt facility from British International Investment (BII), which was used to support the deployment of around 5,000 electric two-wheelers and the rollout of more battery-swap infrastructure in Kenya and beyond.
In September 2025, Paris-based impact investor Mirova also provided up to $10 million in senior secured debt, earmarked for hundreds of new swapping cabinets and tens of thousands of batteries.
IFC said its backing is intended not just to bring capital to Arc Ride but also to deepen investor confidence in the broader electric mobility sector.
Long-term funding coupled with board-level engagement and support for environmental and social standards can help de-risk the startup for future private investment, according to the institution.
In a statement, Arc Ride noted that investors worldwide are increasingly viewing Africa’s e-mobility landscape as a fertile ground for clean energy and transport innovation.
Arc Ride’s model is seen as a practical way to boost electric vehicle adoption by removing two of the biggest obstacles, high purchase costs and concerns about charging infrastructure.
Waza, a Nigerian fintech startup specializing in B2B payments and liquidity solutions for emerging markets, has raised $8 million in a combination of equity and debt financing.
Egyptian ad-tech startup dKilo has raised $3.2 million in seed funding to develop new methods for brands to reach consumers and expand into the Saudi Arabian market.
In a keynote delivered at the Tokyo International Conference on African Development (TICAD 9), Japan unveiled plans to mobilize $1.5 billion in impact investments to support African nations’ transition to sustainable development and reduced carbon emissions.
