ARC Ride, a Nairobi-based electric mobility company, has raised $33.3 million in a new financing round as it prepares to expand its electric motorcycle and battery-swapping business into four additional African markets.

The company plans to deploy the fresh capital in Ghana, South Africa, Tanzania and Uganda, extending a business model built around electric two-wheelers, battery swapping and Battery-as-a-Service.

The investment comes as electric motorcycles gain traction across Africa, drawing growing interest from development finance institutions, impact investors and global automotive companies seeking exposure to the continent’s clean transportation market.

ARC Ride draws institutional backing

The latest funding round was led by Novastar Ventures and Norrsken22, with the International Finance Corporation, British International Investment and Proparco also participating.

Existing investors Musashi Seimitsu, a Japanese automotive supplier, African impact investor Talanton and French global asset manager Mirova also backed the company.

“This funding reinforces our vision of building a robust, scalable energy and mobility network across Africa,” ARC Ride founder Jo Hurst-Croft said.

The company wants to make electric mobility a practical and affordable alternative to petrol-powered motorcycles, which dominate commercial and personal transport across many African cities.

Battery swapping drives the model

Founded in 2019 by Jo Hurst-Croft, ARC Ride designs and assembles electric two-wheelers and operates a battery-swapping network that allows riders to exchange depleted batteries rather than wait for conventional charging.

Its Battery-as-a-Service (BaaS) model is designed to lower the upfront cost of electric motorcycles while making daily operations more convenient for riders.

ARC Ride previously secured a $5 million investment from British International Investment and received a $10 million commitment from Mirova, adding to the capital supporting its expansion.

Kenya provides a launchpad

Kenya has emerged as one of East Africa’s leading markets for electric mobility, particularly electric motorcycles.

The government has introduced the National Electric Mobility Policy, alongside tax incentives including zero-rated VAT and excise-duty exemptions for electric buses, motorcycles, bicycles and lithium-ion batteries.

Kenya’s electricity mix also strengthens the case for electrification. More than 90% of the country’s power generation comes from renewable sources including geothermal, wind and hydropower.

For ARC Ride, the expansion puts its Nairobi-based operating model to a broader test across Africa, where rising fuel costs, urban congestion and demand for affordable transportation are creating an opening for electric motorcycles.