The World Bank’s private sector investment arm, International Finance Corporation (IFC), plans to make an equity investment of up to $5 million (Sh645 million) in e-mobility provider Arc Ride, which is eyeing regional expansion.
IFC said Arc Ride is in the market for its Series A financing round to fund expansion and growth, but did not disclose the size of stake it will be taking up in the e-mobility company founded in 2020.
This means Arc Ride has proven its services have demand in the market and is now looking for funding to scale its operations and expand into other African markets.
“IFC proposes an equity investment of up to $5 million to support Arc Ride’s Series A financing round, which aims to scale network density and service capacity in Kenya; support expansion into new markets across Africa, and strengthen technology capabilities through Research and Development (R&D) and incremental upgrades to internationally compliant standards,” said IFC in its disclosures.
Arc Ride offers Battery-as-a-Service, a hiring model for electric vehicle batteries where users drop depleted batteries at dedicated stations and collect pre-charged ones.
The model allows electric vehicle users to purchase the vehicle or two-wheelers without a battery and rely on the hiring model. Avoiding buying the battery helps lower the initial purchase price and drives adoption of the more environmentally friendly electric vehicles compared to the gasoline-powered vehicles.
Arc Ride has partnered with businesses to position battery swapping cabinets strategically, where riders can make quick stops to make swaps.
The firm has attracted other international financiers, including British International Investment (BII), which last year invested $5 million in the electric mobility company.
In September 2025, it received a $10 million five-year senior secured debt from Mirova International, which was to help it set up over 600 battery-swapping cabinets and 25,000 batteries.
Arc Ride is hoping to leverage IFC’s financial muscle and credibility to attract new investors to fund its expansion plans.
“IFC patient capital and board-level support will be critical to promote the company’s long-term growth and fundraising prospects. Non-financial additionality involves standard setting, as IFC will help the company to improve its environmental and social standards,” said IFC.
The traditional fuel-powered boda bodas are typically used for livelihood generation in the country, with fuel expense accounting for a significant share of a driver's daily income. Despite the economic advantages offered by electric two-wheelers, penetration has remained limited, with high initial purchase price cited as a barrier.
It is, however, estimated that falling technology costs and financing solutions such as those provided by Arc Ride, the African electric vehicle market is poised for significant growth in the coming years.
International financiers have been quick to tap into the prospects of the e-mobility market with increased transactions in the sector.
Other e-mobility firms that have received international funding in the last 12 months include Spiro ($100 million), Enzi Mobility ($3.5 million), and Roam $24 million.
