Our investment
Description of the investment.
Description of the investment.
We invested $5 million in ARC Ride, a Kenyan e-mobility company pioneering a Battery-as-a-Service (BaaS) model for electric two-wheelers. The funding comes from our Climate Innovation Facility, a programme for accelerating climate innovation in emerging markets.
The investment will enable ARC Ride to expand its battery swap network and scale local assembly of electric motorcycles. This will lower barriers to electric vehicle adoption, such as high upfront costs and range anxiety.
Our investment supports Kenya's shift from petrol-powered motorcycles to electric alternatives, helping reduce emissions and improve air quality
Impact information
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
What?
| Impact |
|---|
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How?
| Primary | Secondary |
|---|---|
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Catalysing markets: The successful expansion of ARC Ride will demonstrate the commercial viability of the Battery-as-a-Service model for electric two-wheelers in Africa. By proving that affordable battery leasing and swap infrastructure can overcome key barriers such as range anxiety and high upfront costs, ARC Ride will build confidence among riders, financiers, and policymakers. This is expected to attract new entrants, unlock additional investment, and accelerate the adoption of e-mobility solutions across East Africa. |
Who?
| Stakeholder | Geography | Characteristics |
|---|---|---|
| Planet |
Global |
n/a |
| Consumers |
Kenya |
ARC Ride’s model aims to improve affordability for riders by reducing fuel and maintenance costs, which can significantly enhance riders' monthly earnings. |
How much?
| Scale | Depth/Duration |
|---|---|
|
Our investment will support the roll-out of approximately 2,300 electric two-wheelers, 7,100 batteries, and 230 effective charging cabinets (c. 2,500 charging bays across cabinets and hubs). |
At full scale, ARC Ride aims to deploy 40,000 electric two-wheelers by 2030, avoiding an estimated 4,500 tonnes of CO2 emissions annually. |
Contribution/additionality
| Contribution/additionality |
|---|
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Financial additionality: Our contribution is highly additional as mezzanine debt is not available for early-stage electric mobility companies like ARC Ride in East Africa. Commercial lenders remain cautious due to the sector’s nascency, high capital intensity and technology risk, leaving a financing gap that capital from BII's Climate Innovation Facility seeks to fill. |
Risk
Execution RiskThere is demand and utilisation risk from building out the supply of charging infrastructure ahead of demand. Unexpected Impact RiskRisk of occupational health and safety risks (e.g. battery fires). |
Environmental and social information
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Environmental and social summary
A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.
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Environmental and social risk
A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.
Environmental and social summary
The investment is classified as medium-low E&S risk. We have worked with the company to develop an Environment and Social Action plan (ESAP) focusing on strengthening the approach to health and safety, worker management, supply chain and waste management.
Environmental and social risk
Medium-Low
Reporting and Complaints Mechanism
The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to [email protected] or by mail. See more details on our Reporting and Complaints Mechanism here.
For any other general enquiries contact us at [email protected]
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Key facts
- First published
:
When the investment was first published on the website database.
- September 2025
- Last updated
:
When the last quarterly update of the website database occurred.
- June 2026
- Project number
:
An identifier number shared by investments in the same project.
- D6983
- Status
:
The current status of the investment (green flag for active and red flag for exited).
- Active
- Region
:
The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.
- East Africa
- Country
:
The countries where the investment delivers impact. Where impact is delivered in multiple countries, this is indicated.
- Kenya
- Sector
:
We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.
- Manufacturing
- Sub sector
:
The sub-sector that the investment is made into; this provides a more granular level of detail than the ‘sector’ information
- Ground Transportation
- Investment policy :
- Kinetic
- Investment type :
- Debt
- Start date :
- May 2025
- Amount :
- $5m
- Currency of investment :
- USD
- Domicile
:
The company or investment fund’s place of incorporation.
- United Kingdom
We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.
Type of investment portfolio that each investment is made under. Since 2014, we have run two investment portfolios: Catalyst and Growth. In addition, our Kinetic Portfolio enables us to manage concessional investment strategies.
For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.
For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.
For direct equity investments, this is the date at which British International Investment exited the investment.
For debt investments, this is the date at which the final debt repayment was made.
For funds, this is the date at which the fund was terminated.
For underlying fund investments, this is the date at which the fund manager exited the investment.
The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.
For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.
The currency in which the investment was made.
- First published
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Gender and climate finance facts
- Climate finance
:
Indicates whether the investment is climate finance qualified or partially climate finance qualified and the type of climate finance (adaptation, mitigation or both). We define climate finance using the multilateral development bank (MDB) and the International Development Finance Club (IDFC) Common Principles climate finance methodology. See Common Principles for Climate Mitigation Finance Tracking and Common Principles for Climate Change Adaptation Finance Tracking. We provide the climate finance qualification and type for commitments from 2020 onwards, which is when we launched our Climate Change Strategy.
- Fully qualified
- Climate finance type
:
Mitigation: Indicates investments which, by avoiding or reducing GHG emissions or increasing GHG sequestration, contributes substantially to the stabilisation of GHG concentrations in the atmosphere – at a level which prevents dangerous anthropogenic interference with the climate system consistent with the long-term temperature goal of the Paris Agreement
Adaptation: Indicates investments aimed at preventing or reducing the risks or vulnerabilities posed by climate change and increasing climate resilience. This includes both adapted activities and enabling activities to manage and reduce physical climate risks
Dual: Indicates investments directed towards activities contributing to both climate change mitigation and climate change adaptation and meeting the respective criteria for each category
The climate finance type of the investment is determined at time of commitment.
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- Mitigation
- 2X gender finance
:
Indicates whether the investment is ‘2X qualified’ using the 2X Challenge criteria. You can find out more here. It only applies to investments made from 2018 onwards, when the 2X Challenge was first launched.
- Fully qualified
- 2X qualification criteria:
:
2X Criteria the investment qualifies under. See 2X Criteria for more information.
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- Leadership — Senior Management
2X threshold 30%: Investee already meets threshold - Employment
2X threshold 25%: Investee already meets threshold
- Leadership — Senior Management
- 2X sector
:
Indicates the specific 2X sector benchmark the investment qualifies under. See 2X Criteria for more information.
- Transportation and Storage
- 2X country
:
Indicates the specific 2X country benchmark the investment qualifies under. See 2X Criteria for more information.
- Kenya
- Climate finance
Related investments made by BII into this company:
| Investment name | Commitment | Region | Sector | Start date | Status |
|---|---|---|---|---|---|
| Investment 02 | $3m | East Africa | Manufacturing | November 2025 | Active |
