The Asian Development Bank’s (ADB) venture capital arm ADB Ventures has signed an agreement to invest in an electric two-wheeler vehicle (E2W) and battery pack manufacturer, Selex Smart Electric Vehicles JSC (Selex).
The investment is part of Selex’s US$3 million convertible note round, the ADB hopes to help to reduce carbon emissions in high-usage applications such as last-mile cargo and passenger transport in Vietnam.
Each gasoline motorbike replaced by a Selex E2W can cut the emission of 0.45 tons of carbon dioxide equivalent a year. The company also aims to utilise the fund to expand E2W production lines and set up battery-swapping systems in key cities in Vietnam, solidifying Selex’s position as the nation’s first and largest battery-swapping network provider.
“The electrification of road transport will have a profound impact on the automotive manufacturing and logistics sectors in Southeast Asia. We are proud to have been part of Selex’s journey from the very beginning, and look forward to helping it to become an important regional player in the sustainable transport market in coming years,” said ADB Director General for Private Sector Operations Suzanne Gaboury.
In December 2021, ADB Ventures provided a US$200,000 grant to Selex with an option to make an equity investment in the company.
“We are excited to receive the backing of ADB Ventures. ADB’s unwavering support reaffirms our common goal of combating climate change and provides an important boost to our business. This investment will provide us with a strong foothold in Vietnam and a platform for our expansion into other parts of the region,” said Selex Chief Executive Officer Nguyen Huu Phuoc.
ADB Ventures invests in early-stage technology companies that have significant potential to scale and deliver climate impact in emerging Asia and the Pacific. Its investors include Finland’s Ministry for Foreign Affairs, the Government of the Republic of Korea, the Korea Venture Investment Corporation, the Clean Technology Fund, and the Nordic Development Fund.
Established in 2018, Selex specializes in producing E2Ws and swappable battery packs that are purpose-built for large applications, including last-mile cargo delivery. Selex’s existing clients include regional delivery aggregators, such as Lazada and Grab, which require a single solution provider that can facilitate their transition to a cost-effective and reliable electric vehicle fleet with charging infrastructure to support their operations.