Arc Ride Secures $5M IFC Commitment to Expand E-Mobility Network

STARTUP VENTURE CAPITALFebruary 21, 2026 at 4:56 PM UTC

TLDR

Kenyan startup Arc Ride secures $5 million equity commitment from International Finance Corporation for upcoming Series A round.
Investment to support expansion of battery-as-a-service model and electric motorcycle infrastructure in Kenya.
Arc Ride operates battery-swapping stations and rents electric motorcycles to promote rapid battery exchange and lower upfront vehicle costs.

Kenyan electric mobility startup Arc Ride has secured a $5 million equity commitment from the International Finance Corporation as part of its upcoming Series A round.

The investment will support expansion of the company’s battery-as-a-service model and electric motorcycle infrastructure across Kenya. The funding equals about KSh 645 million.

Founded in Nairobi, Arc Ride operates battery-swapping stations and rents electric motorcycles to riders and logistics operators. The model lowers upfront vehicle costs and reduces charging downtime through rapid battery exchange.

The IFC said the investment aligns with its strategy to finance climate-focused projects in emerging markets. The commitment is expected to help Arc Ride increase service capacity in Kenya and prepare for expansion into Rwanda, Tanzania and Uganda.

Arc Ride previously secured $5 million in loan financing from British International Investment in early 2025. Later in 2025, Paris-based investor Mirova provided a $10 million facility to expand battery-swapping infrastructure.

The company said the new equity backing strengthens its capital base and supports growth plans.

Key Takeaways

Electric two-wheelers are gaining traction in East Africa, where motorcycles are central to transport and delivery services. Rising fuel costs and urban air pollution have increased interest in electric alternatives. Battery-as-a-service models reduce capital barriers for riders by separating battery ownership from vehicle purchase. Swapping systems also address charging constraints in cities with limited grid reliability. Institutional investors are increasing exposure to climate and transport assets in Africa. Development finance institutions often provide anchor funding, which can attract additional private capital. Kenya has introduced policy measures to support electric mobility, including tax incentives for electric vehicles. Competition in the sector is rising as startups seek to scale fleets and infrastructure. With backing from IFC and other global investors, Arc Ride is positioning itself to compete in a market that is shifting from pilot projects to commercial deployment.

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