Indonesian EV Startup Secures US$37.6 Million Funding

Image: MAKA Motors

Indonesia-based electric vehicle (EV) startup Maka Motors announced that it has raised a seed funding round of US$37.6 million. The round was co-led by AC Ventures, East Ventures, and South Korea’s SV Investment. This deal marks one of Southeast Asia’s largest seed funding rounds to date for a hardware startup.

Other participating, strategic investors included Northstar Group, Provident, AlfaCorp, Skystar Capital, Peak XV Partners (formerly known as Sequoia India and Southeast Asia), Openspace Ventures, Shinhan Venture Investment, BEENEXT, Kinesys Group, and M Venture Partners.

Founded in 2021 by ride-hailing veterans Raditya Wibowo and Arief Fadillah, Maka Motors seeks to accelerate the adoption of electric motorcycles in Indonesia.

The company aims to revolutionise the EV two-wheeler industry by addressing the unique needs of the Indonesian market, which have yet to be fully met by existing players.

The company’s vision is to provide EV motorcycles that offer the perfect blend of driving range, power, usability, and durability at competitive pricing compared to current bikes, catering specifically to the demands of Indonesian riders.

Indonesia, home to over 127 million motorbikes, stands as the third-largest global market for two-wheeled vehicles. The majority of these vehicles rely on gasoline as their fuel source, with a meager count of approximately 43,000 registered electric motorcycles.

Deep Local Market Understanding

Given the staggering sales of 6 to 8 million new two-wheeled vehicles annually, there exists a large opportunity for electrification in the segment. Not only do EVs contribute to a greener environment, but they also help Indonesian riders reduce their daily expenses.

Although the electric two-wheeler industry in Indonesia is still in its infancy, numerous brands have introduced their own models while the government strives to promote further support, including tax rebates and business assistance.

“We are excited to partner with those who understand and support our R&D-first approach in our endeavors. By conducting our R&D process in-house and locally, we address the limitations faced by many current EV two-wheeler companies who outsource their R&D and end up missing out on crucial user insights, control over their supply chain, and potential cost efficiencies. Eventually, we aim to lead the market with innovative solutions that meet the unique needs of Indonesian riders,” said Maka Motors Co-founder and CEO Raditya Wibowo.

He added, “This significant funding not only validates our vision but also accelerates our mission to surpass the expectations of Indonesian riders with our electric motorcycles. We are committed to pushing the boundaries of driving range, power, usability, durability, and affordability in the realm of two-wheeled electric vehicles.”

Michael Soerijadji, Founder and Managing Partner at AC Ventures, said, “ACV is excited to invest in and partner with Maka Motors, a game-changer in one of the largest two-wheeler markets in the world. We believe in the company’s capacity to innovate and optimise its supply chain. We also have conviction about the team’s deep understanding of the local market, derived from extensive research and sectoral experience.”