Kenya’s Arc Ride secures $5 million IFC commitment for regional expansion

Arc Ride, a Kenyan battery-as-a-service (Baas) startup, has secured a $5 million (KES 645 million) commitment from the International Finance Corporation (IFC), the World Bank’s private investment arm, to support regional expansion as investors’ appetite for e-mobility and climate solutions rises in the East African market.

The company’s backing from the IFC comes ahead of its planned Series A round, which it plans to use for its regional expansion. It could position Arc Ride to scale its battery-swapping infrastructure and partnerships with local electric mobility operators in the East African market, seen as ripe for clean transport.

“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.

Founded in 2019 by Joseph Hurst-Croft, Arc Ride is betting that its Baas model is the fastest way to push electric motorcycles into the mainstream by removing the battery from the purchase altogether. Riders buy the bike without its most expensive component, then swap depleted batteries for fully charged ones at Arc Ride stations, which it claims is designed to turn the high upfront cost into a manageable daily operating expense.

To scale its model, the company has introduced battery-swapping cabinets in everyday locations, such as petrol stations, small shops, and warehouses, so riders can recharge easily.  The approach has drawn growing interest from global climate financiers.

In early 2025, British International Investment (BII) committed $5 million in debt to the company. That was followed in September 2025 by a $10 million, five-year debt financing from Mirova International to fund new swapping stations and the purchase of batteries.

The IFC backing is expected to further de-risk the business for private investors. IFC said its long-term capital and board-level involvement would strengthen Arc Ride’s fundraising prospects, while helping the company raise its environmental and social standards, a growing requirement for most global climate-focused financiers.