Indika Energy, Alpha JWC Ventures and Horizons Ventures announced Friday their latest collaboration in the form of joint investment in Ilectra Motor Group (IMG), a company that specializes in electric two-wheel (E2W) vehicles.

First announced through Indika Energy’s public expose on May 20, IMG is Alpha JWC Ventures and Horizons Ventures’ first venture into the electric vehicles sector, the trio said in a statement.

Meanwhile, IMG itself was founded to facilitate the partnership and build not only a two-wheeler brand, but also its supporting ecosystem which is very much still nascent, including electric vehicle (EV) Infrastructure for which further collaborations to be built with a partnership network.

To achieve that, IMG raised $7.5 million from Alpha JWC Ventures and Horizon Ventures and another $7.5 million from Indika Energy’s additional equity investment. In total, IMG would raise $15 million to accelerate its development journey started more than a year ago.

According to the statement, Indonesia is a fertile market with large potential for E2W vehicles. The country currently holds the highest two-wheelers ownership penetration in the world (around 42 percent, based on number of vehicles owned per 100 population) and is the third largest market for two-wheelers in general with 6 million motorcycles sold annually.

Furthermore, the market is projected to grow very fast as prices are comparable to existing non-E2W products with much lower operational costs, in addition to the government’s active role in pushing for renewable energy.

Seeing the big potential, IMG sets a big target to become a leading two-wheel electric vehicle player in Indonesia.

According to the statement, IMG will come with sophisticated electric two-wheelers design and top-of-the line performance, completed with great customer experience, backed by supporting technology and mobility ecosystem. The company is set to introduce its first fleet by the end of 2022.

“As a diversified investment company, we aim to increase our non-coal revenue to 50 percent by 2025. Not only that, through IMG, we will be supporting the government’s target to reach 3.2 million units of two-wheel electric vehicles by 2035. Indika Energy is excited to partner with Alpha JWC Ventures and Horizons Ventures which is one of Indonesia’s first venture capital investments in this sector,” said Purbaja Pantja, Director and Group Chief Investment Officer at Indika Energy.

Indika Energy is Indonesia’s leading diversified investment company with key focus on developing new sustainable businesses through its strategic investments in the areas of energy, logistics and infrastructure, minerals, digital ventures green businesses.

“Indonesia’s E2W sector has abundant potential, yet there are only limited players today and none has attained widespread adoption. We are proud to partner with Indika Energy and Horizons Ventures to deliver the best two-wheel vehicle with end-to-end ecosystem and experience that will cater to millions of riders soon. Together, we can build a greener, more sustainable world, one bike at a time,” said Chandra Tjan, Co-Founder and General Partner at Alpha JWC Ventures.

Alpha JWC Ventures is an early to growth-stage Southeast Asian venture capital firm. Its debut fund was launched in 2016 as Indonesia’s first independent and institutional early-stage venture capital fund.

Over the years, Alpha JWC has established a strong reputation and clear positioning in the market as the leading venture capital firm with one of the region’s largest on-the-ground teams and a global network. The firm currently manages around $650 million asset under management (AUM) – the largest early-stage fund in Southeast Asia – and 60+ active portfolio companies across Southeast Asia.

“We are excited to be a part of IMG to help fast track E2W adoption and offer a cleaner option to millions of riders in Indonesia. As the proliferation of automobile use and accelerating global climate change are inextricably linked, achieving significant reductions in vehicular emissions is a pressing mission. We believe that IMG’s holistic approach to create delightful customer experience will transform the mobility ecosystem to be greener and future-first,” said Frances Kang, Portfolio Curator at Horizons Ventures.

Horizons Ventures was co-founded by Solina Chau and Debbie Chang in 2005. It is known for backing era-defining companies making lasting and positive impact in the world. Amongst its string of notable early stage investments are Zoom, Impossible Foods, Perfect Day, Spotify, Siri and Ajaib, reflecting Horizons Ventures’ methodical long-term investment approach.

Indonesia’s Alpha JWC Ventures deploys over $100M investments from its third fund