A BaaS platform aligned with climate and urban transport capital
ARC Ride has raised US$33.3 million, split between a US$23 million Series A equity round and US$10 million in debt facilities, according to Proparco and multiple transaction disclosures. Novastar Ventures and Norrsken22 led the equity round, reinforcing their focus on scalable African climate-tech and mobility platforms. Co-investors include the International Finance Corporation (IFC), British International Investment (BII) and Proparco, alongside existing backers Musashi Seimitsu and Talanton.
The company operates a Battery-as-a-Service (BaaS) model for two- and three-wheel transport. It allows riders to swap depleted batteries for charged units in minutes at automated stations. As a result, riders avoid high upfront battery costs, fuel expenses and range anxiety, while fleet operators gain more predictable running costs. The model also fits neatly with development finance mandates around air-quality gains and lower transport emissions in dense cities.
Proparco has committed US$1.5 million in equity as part of the wider US$33.3 million round, under the EU-backed Choose Africa VC programme. Proparco’s investment note states that the capital will help deploy 5,000 electric motorcycles and associated charging and swapping infrastructure. The project expects to create more than 300 direct jobs and around 2,900 indirect jobs over time. It is also projected to avoid about 100,000 tonnes of CO₂ emissions per year, by replacing internal combustion motorcycles with electric alternatives. As one analyst summary from Lemina captures investor sentiment: ARC Ride is now a live example of climate infrastructure meeting mass-market transport at African scale.
IFC’s separate project documentation shows its equity support focuses on improving access to electric vehicle batteries for two-wheel drivers in Kenya. It also targets scaling network density and enabling expansion into new African markets. Meanwhile, BII is providing both equity and asset-backed debt, including via its Kinetic programme, adding a structured-credit layer to the capital stack.
Where does ARC Ride funding take the platform next?
ARC Ride will use the new financing to expand its battery-swapping and electric motorcycle network beyond Kenya. Target markets include Ghana, South Africa, Tanzania and Uganda. The company plans to add around 5,000 electric motorcycles to its fleet while increasing station density and availability, according to Proparco and regional tech media. In addition, ARC Ride aims to enhance automated swapping technology and integrate more renewable power across its network.
Kenya already shows accelerating EV adoption. Government data cited by Kenyan Wall Street report 24,754 registered electric vehicles by December 2025, up from just 796 in 2022. ARC Ride’s rollout sits within this rising baseline and aligns with Kenya’s National Electric Mobility Policy, launched in February 2026 to push electrification of transport, particularly two-wheelers. Therefore, investors are reading the deal not just as a bet on one company, but as a signal that regulatory conditions for electric mobility in East Africa are normalising.
For capital providers, the round also illustrates deepening collaboration between Africa-focused venture funds and European development finance institutions. Novastar Ventures has a dedicated climate and impact fund, while Proparco has also invested in Novastar’s Africa People and Planet Fund III. Norrsken22, backed by a roster of global tech founders, brings growth-stage discipline and pan-African tech networks. As a result, ARC Ride funding sits at the junction of three themes: urban climate infrastructure, inclusive transport, and maturing venture-DFI syndicates.
Investors, corporates and policymakers will now watch three things: how fast ARC Ride can build dense swapping networks in new markets; whether the economics of its BaaS model hold at scale across varied regulatory regimes; and how quickly follow-on capital flows into adjacent assets such as charging, grid upgrades and local assembly.
Quick answers
ARC Ride closed a US$33.3 million round comprising a US$23 million Series A equity raise and US$10 million in debt facilities, with investors including IFC, BII and Proparco.
Beyond its home market of Kenya, ARC Ride plans to expand its battery-swapping network into Ghana, South Africa, Tanzania and Uganda.
The project is projected to avoid approximately 100,000 tonnes of CO₂ emissions per year by replacing internal combustion engine motorcycles with electric alternatives, according to Proparco’s investment documentation.
