ARC Ride has today announced it has secured $5 million in financing from British International Investment (BII), the UK’s development finance institution and impact investor.
This investment is set to provide e-mobility solutions for Kenya’s cities, marking a boost to the nation’s electric vehicle (EV) adoption efforts. The funding will enable ARC Ride’s initial rollout of 5,000 electric two-wheelers (E2Ws) aka Boda Bodas and accelerate the expansion of its BaaS infrastructure. A key component of this investment is supporting ARC Ride in standardizing the battery swapping infrastructure across East Africa, a move crucial for broader EV adoption in the region.
E-mobility is vital for Kenya’s climate goals, with the country aiming for a low-carbon transport system by 2030. The transport sector currently accounts for 13 percent of Kenya’s Greenhouse Gas (GHG) emissions, making EVs a critical tool for reducing emissions and improving air quality.
ARC Ride is providing affordable and user-friendly BaaS solutions. The company has already established a network of 170 charging stations in Nairobi, significantly reducing the upfront cost of E2Ws and enabling quicker battery swaps for riders.
The BII’s financing is projected to result in the annual saving of over 100,000 metric tonnes of CO2 as electric mobility progressively replaces petrol motorbikes.
Seema Dhanani, Head of Office, Kenya and Coverage Director, East Africa at BII, highlighted the integral role of motorbikes in Kenyan transport. “In Kenya, a Boda Boda is more than just a motorbike; it’s a crucial part of the transportation system, helping millions of people to commute. That is why electrifying Boda Bodas is essential for creating a green and sustainable future for the country. As the UK’s DFI, we are backing new technology and innovative companies such as ARC Ride to accelerate the transition and have a transformative impact on people and the planet.”
Joseph Hurst, CEO of ARC Ride, expressed enthusiasm for the partnership. “This strategic partnership between ARC Ride and BII marks a significant milestone in our ongoing efforts to expand scale and our Pan-African footprint. Together, we will ensure millions of clean kilometers will be driven, putting more money in the pockets of our riders whilst protecting the environment.”