In order to expand its battery-swapping infrastructure for electric motorcycles, Kenyan electric mobility startup ARC Ride has obtained a US$10 million debt financing facility from Paris-based sustainable investment manager Mirova.
By using the Battery-as-a-Service (BaaS) model, ARC Ride lowers the initial cost of motorcycle ownership and removes range anxiety and fuel costs by enabling riders to convert to electric motorcycles and quickly replace depleted batteries with fully charged ones.
With the US$10 million in debt capital obtained from Mirova, ARC will be able to install 25,000 batteries and more than 600 new battery-swapping cabinets throughout Kenya.
“This partnership with Mirova marks a major milestone in our mission to make electric mobility accessible, affordable, and sustainable across Africa,” said Joseph Hurst-Croft, CEO at Arc Ride.
Mirova’s Gigaton Fund provided the funding, marking the fund’s first investment in an e-mobility project. According to Mirova, the deal employed a blended finance strategy, utilizing catalytic capital to reduce the risk of the investment in preparation for upcoming private funding.
“This investment reflects Mirova’s mission to support innovative, high-impact climate solutions in emerging markets,” said Rim Azirar, deputy head of Emerging Market Energy Transition at Mirova. “ARC Ride is redefining urban mobility in Africa through a scalable model that reduces emissions and improves livelihoods.”
