• Proparco, the French development finance institution, announces a USD 1.5 million equity investment in the fundraising round of Arc Ride Ltd.
• This first investment aims to accelerate the deployment of e-mobility solutions across Africa.
• By supporting Arc Ride’s growth, Proparco seeks to make electric mobility a tangible driver of climate action and economic inclusion, contributing to a sustainable and accessible energy transition.
• This investment is made under the EU-backed Choose Africa VC program with support from the European Union and the European Fund for Sustainable Development Plus (EFSD+). By improving access to finance for early-stage companies, the program fosters entrepreneurship, innovation and job creation in Africa, contributing to the EU’s Global Gateway strategy and the Team Europe Initiative IYBA.
Arc Ride, an innovative e-mobility player in East Africa
Founded in the United Kingdom and operating in Kenya through its subsidiary Arc Ride Kenya Ltd, Arc Ride has established itself as a key player in the transition towards clean mobility. The company develops and deploys electric motorcycles tailored to African urban environments, supported by a dense charging infrastructure network and an innovative battery-swapping system.
With an estimated 30% market share of Nairobi’s electric two-wheeler market, Arc Ride is actively contributing to the transformation of Kenya’s transport sector in a rapidly expanding market. The company also benefits from a strategic partnership with Greenwheels, Uber’s preferred fleet management partner in Africa.
A Series A funding round led by Novastar Ventures to support expansion across Africa
Proparco is supporting Arc Ride’s scale-up through a USD 1.5 million investment, as part of a larger USD 33.3Million round, spanning a USD 23 million Series A round, and USD 10Million debt. The Series A round, led by leading global VCs Novastar Ventures and Norrsken22, with IFC, BII and Proparco joining as co-investors, will support the company’s expansion in Kenya and several African countries, including South Africa, Uganda, Tanzania and Ghana.
A high-impact investment for economic development and climate action
This investment will strengthen the deployment of 5000 electric motorcycles and charging infrastructure while reinforcing a business model built on recurring revenues. The project is expected to create more than 300 direct jobs and nearly 2,900 indirect jobs over time.
From an environmental perspective, it is expected to avoid approximately 100,000 tonnes of CO₂ emissions annually by replacing internal combustion engine vehicles with electric alternatives, in line with the objectives of the Paris Agreement.
This partnership is fully aligned with Proparco’s priorities on climate action, sustainable development and reducing inequalities, with particular attention to gender inclusion through the 2X Challenge initiative. It further demonstrates Proparco’s commitment to supporting innovative, high-impact solutions in emerging markets.