Kenyan electric mobility startup ARC Ride has secured $10 million in debt financing from Mirova, a Paris-based sustainable investment manager. This investment marks Mirova’s first electric vehicle (EV) deal in Sub-Saharan Africa and is aimed at scaling ARC Ride’s battery-swapping infrastructure across Kenya.
The funds will enable ARC Ride to deploy over 600 battery-swapping cabinets and 25,000 batteries throughout Kenya. This expansion is part of ARC Ride’s Battery-as-a-Service (BaaS) model, which allows riders to swap depleted batteries for charged ones in minutes, reducing upfront vehicle costs and eliminating range anxiety.
The financing is structured as a senior secured debt facility with a five-year tenor. Mirova’s Gigaton Fund, which has raised over $280 million toward its $500 million target, is leveraging blended finance to de-risk the investment and attract future private capital. This approach aligns with Mirova’s commitment to supporting low-carbon mobility solutions in emerging markets.
ARC Ride’s expansion is poised to transform Kenya’s transportation landscape, where motorcycle taxis, known as boda bodas, are integral to daily mobility. By providing accessible and sustainable alternatives to fossil fuel-powered motorcycles, ARC Ride aims to reduce carbon emissions and contribute to a cleaner urban environment. The company’s growth follows a $5 million investment from British International Investment (BII) earlier this year, further solidifying its position in the electric mobility sector.
As ARC Ride continues to scale its operations, it sets a precedent for the adoption of electric mobility solutions in Africa, demonstrating the potential for sustainable transportation models to thrive in emerging markets.
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