The deal marks the Mirova Gigaton Fund’s first foray into the electric vehicle space in sub-Saharan Africa and is expected to accelerate the expansion of ARC Ride’s battery-swapping infrastructure across the region.

The funding will be directed toward the deployment of more than 600 battery-swapping cabinets and the acquisition of 25,000 batteries.

These resources are central to ARC Ride’s model, which seeks to provide an affordable and reliable alternative to traditional fuel-powered motorcycles, a dominant form of transport in East African cities.

Battery swapping, which allows riders to quickly exchange depleted batteries for fully charged ones, is viewed as a critical solution for overcoming the limitations of charging infrastructure and reducing downtime for drivers.

Joseph Hurst-Croft, the chief executive of ARC Ride, described the transaction as a milestone in the company’s journey to make electric mobility widely accessible and sustainable.

“With Mirova’s support, we’re not only scaling our operations in Kenya, we are laying the groundwork for a cleaner transport future across wider regions in Africa,” he said.

For Mirova, the deal aligns with the broader mandate of the Gigaton Fund, a blended finance initiative that channels capital into clean energy and climate-focused ventures in emerging markets.

Rim Azirar, deputy head of emerging market energy transition at Mirova, emphasized that the investment underscores the fund’s mission to back innovative solutions that reduce carbon emissions and improve livelihoods.

“ARC Ride is redefining urban mobility in Africa through a scalable model that reduces emissions and improves livelihoods. We’re proud to support their journey,” she noted.

The transaction comes at a time when Africa is grappling with rapid urbanization, rising fuel costs, and growing concerns about air pollution and greenhouse gas emissions.

Two- and three-wheeler vehicles, commonly used for commuting and delivery services, are seen as a crucial entry point for electrification in the region.

By focusing on battery-swapping technology, ARC Ride aims to remove one of the biggest barriers to EV adoption—limited charging infrastructure—while creating a network that can be scaled across other African markets.

Mirova’s Gigaton Fund has so far raised more than $280 million toward its $500 million target, with investments spanning renewable energy access, clean power generation, and climate-smart infrastructure.

Its backing of ARC Ride signals increasing investor confidence in Africa’s nascent but fast-growing e-mobility sector, where companies are racing to provide sustainable transport solutions that also drive economic opportunities.