Geo Energy revealed that the investment is a convertible loan and share placement. The loan carries an interest of 12% annually for 24 months or until conversion.
Heaptalk, Jakarta — Geo Energy Resources Limited, through its subsidiary Geo Electric, has invested in the electric vehicle company Charged Asia at US$40 million, approximately Rp610 billion. This investment is provided as a convertible loan and share placement.
According to the company, the investment will scale up the additional stream of revenue and income and contribute to a greener and improved living environment for future generations.
The loan carries an interest of 12% annually for 24 months or until conversion. According to the group, this transaction aligned with Geo Energy’s strategy to diversify its portfolio by injecting the funds into sustainable businesses. On the other hand, the company has different options to collaborate with Charged Asia to increase its investment values by up to US$36 million to become the majority shareholder.
Responding to this capital investment, the Executive Chairman and CEO of Geo Energy, Charles Antonny Melati, revealed, “The group understands that pollution and healthy environment is a growing concern in Indonesia, particularly in Jakarta Greater area. Jakarta topped the list as the world’s most polluted city and nearly registers unhealthy air pollution levels daily. To play our part in improving the environment, the company has proactively explored business opportunities to invest in renewable energy.
As it is known, the EV startup has successfully developed three motorcycle models and has delivered more than 1,000 motorbike products in Indonesia, Malaysia, and Vietnam. This growth demonstrates the startup’s robust foothold in the Indonesian market with significant potential to scale up its presence in the EV industry.
Aligning with Indonesia’s government intentions, the Ministry of Industry targets implementing electric vehicles for two-wheeled at around 1.76 million and 400,000 for four-wheeled by 2025.
Charged Asia claimed that the funding will enable the startup to continue broadening its operations in the archipelago and other Southeast Asia markets and enhance its EV products to support the government in attaining this goal. Before seizing this investment, this Singapore-based startup obtained its seed fund worth US$4.5 million from DeClout as of September 2022.
