Indonesia-based electric vehicle (EV) startup MAKA Motors announced Thursday the successful completion of its seed funding round, raising $37.6 million.

The funding round was co-led by AC Ventures, South Korean investor SV Investment, and East Ventures, MAKA Motors said in a statement.

The funding round is also joined by other strategic investors including Northstar Group, Provident, AlfaCorp, Skystar Capital, Peak XV Partners (formerly known as Sequoia India and SEA), Openspace Ventures, Shinhan Venture Investment, BEENEXT, Kinesys Group, and M Venture Partners (MVP).

According to the statement, the funds raised in this seed round will enable MAKA Motors to scale its operations, expand its research and development capabilities and facilities, as well as accelerate the production of its innovative electric motorcycles.

The company’s first mass-market product is currently in development and slated for launch in 2024, with its first batch of pilot vehicles ready for deployment this month.

MAKA Motors will also build its factory in West Java starting later this year.

“By conducting our research and development (R&D) process in-house and locally, we address the limitations faced by many current 2W EV 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 Founder and Chief Executive Officer Raditya Wibowo.

MAKA Motors Co-Founder and Chief Technology Officer Arief Fadillah also said this significant funding not only validates the firm’s vision but also accelerates its mission to surpass the expectations of Indonesian riders with its 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,” he said.

According to him, since the beginning, the firm has conducted a rigorous in-house research and development process, recruiting top-notch team members with extensive experience working with leading automotive companies in Indonesia, Japan, and Germany in collaboration with world-class technical partners and suppliers.

“Beyond creating superior vehicles, we dream of building exceptional hardware engineering capabilities in Indonesia and bringing our brilliant local talents home to join us in our mission,” he added.

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

The company aims to revolutionize the electric motorcycle industry by addressing the unique needs of the Indonesian market that have yet to be fully met by existing players.

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

According to the statement, 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.

Given the staggering annual sales of 6 to 8 million new two-wheeled vehicles, MAKA Motors opined that there exists a big opportunity for electrification in this segment.

Acknowledging both the sector potential and growing competition, MAKA Motors prioritizes research and development.

The company has heavily invested in its engineering team and R&D capabilities, fostering a strong commitment to innovation.

This dedication enables MAKA Motors to produce superior products that outperform competitors, while also ensuring a streamlined cost structure.

AC Ventures Founder and Managing Partner Michael Soerijadji said the firm believes in MAKA Motors’ capacity to innovate and optimize its supply chain.

“We also have conviction about the team’s deep understanding of the local market, derived from extensive research and sectoral experience,

“Together with MAKA Motors, we aim to champion the transition toward sustainable mobility in Indonesia,” he added.

SV Investment Managing Partner David Junghun Bang said that the firm is seeing a great potential in Southeast Asia as one of the fastest growing and most dynamic markets globally, and it believes Indonesia is leading that growth as the largest economy in the region.

According to him, the EV sector is still at a very early stage in Indonesia, but the firm sees the sector rising very rapidly in the near future backed by government initiatives and prominent players like MAKA Motors.

Especially with Indonesia’s high usage of 2-wheelers, he believes the MAKA team is targeting the right segment of EV at the right timing.

“Also, South Korea is an advanced market in terms of EV technology, with numerous startups and conglomerates developing batteries, motors, etc,

“As a strategic partner, we hope to bridge MAKA Motors with relevant Korean players who can be of synergistic support for the company,” he added.

East Ventures Partner Avina Sugiarto also said the firm believes MAKA Motors exemplifies a commitment to sustainable mobility solutions, combining cutting-edge technology with environmental responsibility.

“With Raditya and Arief’s experience, execution capabilities and innovative designs tailored for Indonesian riders, we are confident in their ability to ride the growth of electric mobility and decarbonize transportation in Indonesia,” he added.

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