Kenyan electric mobility startup ARC Ride announced on September 8 that it had raised $33.3 million in a mix of asset-backed debt and equity financing from Novastar Ventures and Norrsken22, with the International Finance Corporation (IFC), British International Investment (BII), and Proparco participating in the round to support the expansion of its battery-swapping network and electric motorcycle fleet across Africa.
The funding, which also saw participation from existing investors, including Musashi Seimitsu, a Japanese automotive supplier, and Talanton, will be used to add 5,000 electric motorcycles to ARC Ride’s fleet, strengthen its battery infrastructure, and support expansion into other African markets, including Ghana, South Africa, Tanzania and Uganda, while consolidating its presence in Kenya.
The raise comes less than two months after M-KOPA Kenya Mobility, the electric motorcycle financing arm of pan-African fintech M-KOPA, secured a $30 million senior debt commitment, as more companies bet on the growing adoption of electric motorcycles not only in Kenya but across Africa.
“This funding reinforces our vision of building a robust, scalable energy and mobility network across Africa,” Jo Hurst Croft, founder of ARC Ride, said in a statement.
High fuel costs push African startups to bet on e-mobility
As many African countries, most of which remain heavily reliant on imported refined petroleum products, continue to feel the impact of rising fuel costs amid the conflict in the Middle East, citizens are increasingly turning towards alternative energy sources, while companies are betting on electric mobility as part of the continent’s transport future.
Earlier this year, Kenya unveiled its National Electric Mobility Policy, aimed at driving a cleaner and more sustainable transport system.
Kenya is estimated to spend about $5 billion annually on petroleum imports, a burden that not only strains the country’s foreign exchange reserves but also exposes its economy to volatility in global fuel prices.
“This substantial fuel import bill reflects Kenya’s heavy reliance on imported petroleum for transport, industry, power generation and aviation—making fuel one of the most significant components of our total import expenditure,” CS Chirchir said at the launch of the policy.
According to Chirchir, the East African nation is witnessing rapid adoption of electric vehicles. The number of registered EVs rose from 1,378 in 2022 to 39,324 by the end of 2025, representing an increase of more than 2,700% in just three years.
The boda boda category—commercial motorcycles widely used for last-mile transportation—recorded one of the highest rates of growth. Kenya has an estimated two million boda bodas, many of which are currently petrol-powered.
Many companies, however, are betting that riders will increasingly switch from petrol-powered motorcycles to battery-powered alternatives.
On July 23, TechMedia Africa reported that part of the $30 million senior debt raised by M-KOPA would be used to finance new pay-as-you-go loans for electric motorcycles and battery systems.
A similar trend is playing out in Nigeria. In early August, Moove, the Nigerian-founded mobility technology company, raised $250 million in a Series C funding round.
While Moove’s investment is focused largely on autonomous mobility, the company said the fresh capital would be used to expand its autonomous vehicle business, including investments in fleet ownership and robotics-first depot infrastructure known as ‘Nests’.
These facilities are designed to support charging, maintenance, servicing and the continuous operation of autonomous fleets, while the funding will also support the company’s expansion into new global markets.
Also in June, African EV platform Spiro raised $215 million in equity financing to scale electric mobility and energy infrastructure across Africa.
In July, TechMedia Africa also reported that MOPO, an African clean energy company, plans to invest up to $75 million in Nigeria by 2030 to expand its solar-powered battery rental network, following the signing of an agreement with the Rural Electrification Agency (REA).
The growing investments reflect increasing confidence among startups and investors that electric vehicles, battery-swapping infrastructure and alternative energy systems could offer African consumers and businesses a more affordable and sustainable alternative to petrol-powered transportation.
Croft said ARC Ride’s ambition is to accelerate that transition by making electric motorcycles easier and cheaper for riders to adopt.
“Our ambition is to make electric mobility the default choice for riders across Africa by making it more accessible, more affordable and more practical than petrol alternatives. This funding allows us to scale the infrastructure required to support that transition and to do so at pace,” Croft said.