Indonesia’s Maka Motors, an electric vehicle startup specializing in two-wheelers, has successfully concluded its seed funding round, raising US$37.6 million. The company, co-founded by two former executives from the Indonesian ride-hailing giant Gojek, managed to secure the funding while still in the research and development stage, making it one of the largest seed funding rounds for a hardware startup in Southeast Asia.
The funding round was co-led by AC Ventures, East Ventures, and South Korea’s SV Investment and saw participation from several strategic investors, including Peak XV Partners, Provident, AlfaCorp, M Venture Partners, Northstar Group, Openspace Ventures, Shinhan Venture Investment, Beenext, Kinesys Group, and Skystar Capital.
Established in 2021 by Raditya Wibowo and Arief Fadillah, Maka Motors aims to promote the widespread adoption of electric motorcycles in Indonesia. With Indonesia being one of the largest markets for two-wheeled vehicles, the startup caters specifically to the unique demands of Indonesian riders, which are yet to be fully met by existing players.
Maka Motors envisions providing EV motorcycles that offer an optimal combination of driving range, power, usability, and durability at competitive prices compared to conventional bikes.
The startup plans to utilize the funds to scale its existing operations, enhance research and development capabilities, and significantly increase the production of its electric motorcycles.
This financial boost will enable Maka Motors to innovate further and refine its in-house development of EVs commenced in the previous year. Additionally, the company is gearing up to establish its manufacturing facility in West Java, with construction slated to begin later in 2023.
Maka Motors distinguishes itself by conducting its research and development in-house and locally. With this, the startup gains the advantage of cost reduction and maintains greater control over its supply chain.
The CEO emphasized that the pricing range of Maka Motors’ products will be on par with conventional gasoline-powered motorcycles, making them an attractive and accessible choice for consumers.
Indonesia‘s motorbike market has grown, with 125.3 million motorbikes recorded in 2022, which is a 64% increase compared to the previous year. As of April 2023, the country had more than 40,000 electric motorcycles traversing its roads, indicating a growing interest in eco-friendly transportation options.
The Indonesian government has been actively incentivizing and supporting the EV industry to accelerate the adoption of electric vehicles (EVs) like electric motorcycles.
The government aims to encourage consumers and investors to embrace environmentally friendly alternatives through various subsidy programs and incentives.
Maka Motors’ plans for the future include the development of its first mass-market product, which is currently under development and scheduled for launch in 2024. The company is making the first batch of pilot vehicles anticipated to be deployed in July. Moreover, Maka Motors has set its sights on establishing a factory in West Java later this year.