ALVA Completes 766 Billion Rupiah Series B Funding Led by Horizons Ventures

PT Ilectra Motor Group (IMG or ALVA) with brand ALVA electric vehicles have completed a series B fundraising, with an investment value of up to $50 million or the equivalent of 766,4 billion Rupiah. This funding round includes all past investors led by Horizons Ventures.

Meanwhile, investors including HH-CTBC Partnership LP (Foxconn Co-GP Fund), which together with Horizon Ventures and Indika Energy, are the largest investors to date. Apart from the Foxconn Co-GP fund, the new investor involved in this funding round is Brama One Ventures.

It is planned that the fresh funds will be used by the company to continue to accelerate ALVA product development and expand its network to serve more consumers throughout Indonesia. End of 2022 ago Standard Chartered Indonesia has also provided funding support of $10 million (over 156 billion Rupiah).

"We continue to set the standard for electric vehicles through our strong R&D and domestic market insight, while at the same time enhancing and redefining the customer experience as we expand our coverage across Java and Bali in 2023," said President Director & CEO PT Ilectra Motor Group Purbaja Pantja.

Focus on the development of two-wheeled vehicles

The company has launched a second model of its electric motorcycle product, namely "ALVA Cervo" in May 2023. Previously they have also introduced the product "ALVA One", a model launched in August 2022. To support operations end-to-end, IMG's manufacturing facility in Cikarang, West Java, has been operational since Q4 2022 with a total capacity of 100.000 units per year.

In addition, the ALVA Experience Center in SCBD Jakarta and ALVA Studio at Mall Bali Galeria are fully operational to support brandexperience consumer, sales, and after-sales service.

"Superior two-wheeled electric vehicle products can only be realized with the provision of strong market insight and dedication to increase customer satisfaction through customer service end-to-end smooth. We are very confident that ALVA will fully exploit the vast market potential in Indonesia," said Chief Investment Officer Foxconn Co-GP Fund James Tu.

ALVA or Alva One is a zero-emission motorbike that offers an adventurous style automatic scooter design. This motorbike has the ability to move up to a maximum speed of 90 km per hour. While one fully charged battery can cover a distance of up to 70 km. One battery can be fully charged with a charging duration of 4 hours.

The potential of electric motors in Indonesia

Indonesia currently has the highest penetration of two-wheeler ownership in the world --- around 42%, based on the number of vehicles owned per 100 people; and is the third largest market for two-wheeled vehicles with an estimated 6 million motorcycles sold annually.

With abundant resources, a rapidly growing middle class, and a commitment to sustainability, the potential for electric vehicles in Indonesia considered quite promising. It is currently recorded that the market for two-wheeled electric vehicles in Indonesia is projected to grow rapidly because prices are comparable to non-electric vehicle products with much lower operational costs.

Supported by the government's active role in encouraging electrification, providing infrastructure, and promoting the conversion of electric vehicles. By taking these steps, Indonesia can accelerate its journey towards a cleaner future, powered by electric vehicles.

"Indonesia has enormous potential in the development of electric vehicles. We hope to continue to innovate and develop ALVA, as well as expand its market throughout Indonesia," said Indika Energy Vice President Director and Group CEO Azis Armand.