IFC invests $5 million in Arc Ride to scale Kenya’s electric motorcycle market

The International Finance Corporation (IFC), the private-sector arm of the World Bank Group, plans to invest up to $5 million in Nairobi-based electric mobility startup Arc Ride, strengthening Kenya’s electric motorcycle ecosystem and battery-swapping infrastructure.

The proposed equity investment forms part of Arc Ride’s Series A round and will support expansion of its Battery-as-a-Service (BaaS) platform. The company operates more than 170 automated battery-swap stations across Nairobi, positioning it among East Africa’s largest electric mobility networks.

IFC expands Africa climate finance
Kenya’s boda boda industry, with over one million registered motorcycles, represents one of Africa’s largest electrification opportunities.

Electric motorcycles can lower riders’ daily operating and maintenance costs by as much as 30 percent compared with internal combustion engine models, according to market participants.

Arc Ride scales battery network
IFC’s entry signals rising institutional confidence in Africa’s electric vehicle (EV) market. Sustainable investors, including Mirova’s Gigaton Fund, previously committed up to $10 million to support Arc Ride’s infrastructure expansion.

Urban transport accounts for a substantial share of carbon emissions across African cities. Kenya’s EV transition aligns with national climate targets while reducing reliance on imported fossil fuels.

Founded in 2020, Arc Ride has rapidly emerged as a leader in electric two- and three-wheeler solutions, focusing on battery-swapping infrastructure and affordable e-motorcycle deployment for boda boda riders and urban commuters. 

For Arc Ride, IFC’s backing enhances credibility and could unlock additional institutional capital, accelerating regional expansion beyond Kenya as African cities pursue cleaner transport alternatives.