Arc Ride, a Nairobi-based electric mobility startup, has just received about Ksh.645 million ($5 million ) from the International Finance Corporation (IFC) as it prepares for its Series A funding round.
The funding points to what global investors see as real promise in Kenyan solutions to climate challenges and transport problems.
The company’s model has been that riders buy electric motorcycles without paying for the battery, traditionally the most expensive part, and instead swap depleted batteries for charged ones at Arc Ride stations.
According to IFC’s disclosure, the investment will help Arc Ride grow its network in Kenya, venture into new African markets and improve its technology through research and development.
IFC said its long-term capital and board-level involvement should help the company attract further investment and raise environmental and social standards, increasingly important criteria for climate-focused funders around the world.
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The funding comes against a backdrop of growing confidence in Kenya’s startup ecosystem.
In recent years, a number of local ventures have raised substantial funding to scale up, including M-KOPA, a fintech and pay-as-you-go energy provider, which has attracted tens of millions in capital to expand access to digital services and clean energy, while Roam raised over $20 million to grow its electric vehicle offerings.
BasiGo, which offers electric buses through an innovative leasing model, has raised millions to begin delivering electric public transport, and companies like Spiro are building thousands of electric motorcycles and battery swap stations across the region.
These successes show that the appetite for climate solutions among investors isn’t abstract but reflected in real bets on businesses that are reshaping mobility and energy use.
