The Private Infrastructure Development Group (PIDG) is investing $2.5 million in LOCA, Laos’ largest ride-hailing service provider.
PIDG said in a statement on Tuesday that the convertible loan provided through InfraCo, PIDG’s project development solution, will provide growth capital to develop an estimated 54 charging stations and pilot a fleet of up to 20 electric vehicles (EV) cars.
The transaction has also received a $66,000 technical assistance grant from PIDG financing commercial due diligence to assess the broader EV market in Laos.
This investment, PIDG’s first in Laos, recognizes the potential for ride-hailing services to improve living environments and contribute to climate action in the country.
With a growing tech-savvy urban population, ride-hailing is fast becoming the preferred mode of transport for both locals and tourists.
It is expected that the ride-hailing market will grow at a compound annual growth rate (CAGR) of 4.33 per cent 2025-2030, leading to a market value above $8 million in revenues and an estimated 1.6 million users by 2030.
“PIDG’s investment in LOCA will enable us to expand our EV charging network to up to 93 stations nationwide,” said Souliyo Vongdala, Co-founder and Chief Executive Officer of LOCA.
“This expansion goes far beyond serving our taxi fleet – it will benefit all EV owners in Laos, providing wider access to reliable and fast charging infrastructure,
“By making long-distance travel more convenient and reducing range anxiety, this investment will further accelerate EV adoption across the country and strengthen Laos’ transition toward a clean energy future,” he added.
Meanwhile, Claire Jarratt, Head of Investment Management – InfraCo at PIDG, said partnering with LOCA reaffirms PIDG’s commitment to invest in businesses that are focused on climate action and sustainable development.
“With this first investment in Laos, we look forward to more partnerships and investments across our focus sectors of energy and electrification; transport, logistics and connectivity; sustainable and resilient cities; and water and natural resource management to catalyze growth,” she added.
This transaction aligns with the PIDG 2023-2030 strategy which identified transportation, including e-mobility, as a key sector for investment to raise living standards and help shape inclusive and climate resilient economies.
It is noted that the EV sector in Laos is experiencing fast growth driven by user demand and government support.
To decrease their dependence on imported fuel and reduce carbon emissions, the Laos government has set targets to increase the share of EVs in the country to comprise 1 per cent of all vehicles by 2025, and over 30 per cent by 2030.
The transaction supports SDG 9: Industry, innovation and infrastructure through facilitating sustainable and resilient infrastructure development through advanced financial support, said the statement.