ARC Ride Gets $5M Boost from BII to Accelerate Electric Mobility

Joseph Hurst

ARC Ride, an e-mobility battery-as-a-service (BaaS) provider, today announced a $5 million financing from British International Investment (BII), the UK’s development finance institution and impact investor to provide affordable, reliable and clean e-mobility solutions for rapidly developing cities in Kenya.

E-mobility is crucial to Kenya’s climate goals, aiming for a low-carbon transport system by 2030. The transport sector, responsible for 13 per cent of Kenya’s Greenhouse Gas (GHG) emissions, sees electric vehicles (EVs) as key to reducing emissions and improving air quality.

According to Joseph Hurst, CEO of ARC Ride: “This strategic partnership between ARC Ride and BII marks a significant milestone in our ongoing efforts to expand scale and expand our Pan African footprint. Together, we will ensure millions of clean kilometres will be driven. Putting more money in the pockets of our riders whilst protecting the environment.”

However, due to limited access to charging facilities and appropriate financing solutions, EV adoption has been slow. ARC Ride is addressing this challenge by providing affordable and user-friendly BaaS solutions. The company has already installed 170 charging stations in Nairobi. This reduces the upfront cost of electric two-wheelers (E2Ws) and enables quicker battery swaps.

BII’s financing will enable ARC Ride’s initial rollout of 5,000 E2Ws and accelerate the expansion of E2W BaaS infrastructure. By building Africa’s first and largest automated battery swapping network, it is also establishing the industry standard for battery swapping of E2Ws both for ARC Ride and other manufacturers, which is important for more EV adoption.

It will directly result in over 100,000 metric tonnes of CO2 per year being saved as electric mobility replaces petrol motor bikes.

Daniel Wilcox, Economic Counsellor, British High Commission Nairobi, said: “There is great potential for green manufacturing in Kenya to drive economic growth and job creation. The UK is a long-term partner for long term growth in Kenya – and this investment will support Kenya’s climate ambitions, support hardworking Kenyans and their jobs, make Nairobi not only a healthier place to live, and a more attractive place to do business. This investment compliments the UK’s effort in supporting the decarbonisation of the Nairobi transport systems – long may Nairobi remain the green city in the sun!”

Seema Dhanani, Head of Office, Kenya and Coverage Director, East Africa at BII said: “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.”

Source: TechMoran