Seizing this new capital, ALVA also plan to expand its business coverage to all areas of Java and Bali this year.
Heaptalk, Jakarta — PT Ilectra Motor Group (IMG), popularly known as ALVA, announced its completion of Series B fundraising, with an investment value of up to US$50 million (around Rp766.4 billion). Previously, ALVA had also bagged funding worth US$10 million from Standard Chartered Indonesia at the end of 2022.
The company will allocate fresh funds to accelerate ALVA’s product enhancement and expand its network to serve more consumers in Indonesia. This investment round comes from ALVA’s existing investors, which was led by Horizon Ventures. Meanwhile, the new strategic investors, such as Brama One Ventures and HH-CTBC Partnership LP (Foxconn Co-GP Fund), together with Horizon Ventures and Indika Energy, have become ALVA’s most significant investors.
The President Director, and CEO of IMG, Purbaja Pantja, affirmed, “We continue to set the standard for electric vehicles through our robust R&D and domestic market insight while continuously enhancing the customer experience. We also expanded our coverage to all areas of Java and Bali this year,”
Indonesia’s two-wheeled Electric Vehicle (EV) market is projected to increase due to comparable costs to non-electric vehicle products with much lower operating costs, which is also promoted by government’s policy in establishing electrification, providing infrastructure, and promoting the conversion of electric vehicles.
Purbaja, in his further statement, delivered that Indonesia currently has the highest penetration of two-wheeled vehicle ownership worldwide based on the number of vehicles owned per 100 residents, reaching 42%. This output shows Indonesia as the third largest market for two-wheeled vehicles, with an estimated 6 million motorcycles traded annually.
Leading this investment round, Horizons Ventures’ representative, Frances Kang, stated, “It is an honor for us to be part of ALVA’s mission in taking a significant move to attain a sustainable future for Indonesia through implementing a smarter and cleaner EV ecosystem. ALVA’s two-wheeled products exemplify the seamless integration of technology and scalability to be the core to revolutionize daily commuting.”
Established in 2021, IMG aims to provide lifestyle mobility solutions focusing on developing electric two-wheeled vehicle products and their supporting ecosystems. The company released two models of its two-wheeled electric vehicle, ALVA One, in August 2022 and its second model of electric motorbike product, ALVA Cervo, in May 2023.
ALVA continues strengthening its ecosystem by building an IMG manufacturing facility in Cikarang, West Java, to support its end-to-end operations. This facility has operated since the fourth quarter of 2022, accommodating a total product capacity of 100,000 units annually. Besides, IMG has also built sales and after-sales services in several locations, such as the ALVA Experience Center in SCBD, Jakarta, and ALVA Studio Mall in Bali Galeria, Bali.
“Indonesia has committed to reaching Net Zero Emission (NZE) ambitiously. IMG’s presence in the electric vehicles sector supports Indonesia’s green transformation. Superior two-wheeled electric vehicle products can only be realized with strong market insight and dedication to increasing customer satisfaction through end-to-end services,” The Chief Investment Officer of Foxconn Co-GP Fund, James Tu, said.
