Paris-based sustainable investment manager Mirova has committed up to $10m in debt to Kenyan electric mobility startup Arc Ride. The deal marks the first electric vehicle investment in Africa for its $282m Gigaton Fund and is aimed at scaling Arc Ride’s battery-swapping infrastructure for electric motorcycles in Kenya.
The investment signals growing international investor confidence in Africa’s e-mobility sector, particularly the two-wheeler market which is a cornerstone of urban transport and the gig economy in cities like Nairobi. For Mirova, an affiliate of Natixis Investment Managers with €33bn in assets, it represents a strategic entry into a market forecast to grow at over 10.6% annually through 2029.
The Deal
The financing is structured as a five-year senior secured loan. Arc Ride will use the capital to deploy over 600 new battery-swapping cabinets and 25,000 batteries across Kenya.
Mirova stated the transaction uses a blended finance approach, leveraging catalytic capital to de-risk the investment for future private capital. The firm’s local presence in Nairobi was noted as a key factor in sourcing and structuring the deal.
“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.
Why it matters
Kenya’s transport sector is dominated by motorcycle taxis, known locally as boda bodas. These riders, often low-income gig workers, have been squeezed by rising and volatile fuel prices.
Arc Ride’s Battery-as-a-Service (BaaS) model tackles this by allowing riders to switch to electric motorcycles and swap depleted batteries for fully charged ones in minutes. This model lowers the upfront cost of vehicle ownership and eliminates both fuel expenses and range anxiety.
The environmental impact is also significant. According to the company, each electric motorcycle deployed is estimated to reduce CO₂ emissions by two tonnes annually compared to its internal combustion engine counterpart.
“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.”
The deal is the latest in a series of investments into African e-mobility, as startups across the continent race to build the infrastructure needed to support the transition away from fossil fuels.