MAKA Motors, Indonesia-based electric vehicle (EV) startup, secures US$37.6 million seed round co-led by East Ventures

Indonesia-based electric vehicle (EV) startup MAKA Motors announced today the successful completion of its seed funding round, raising US$37.6 million. The funding round was co-led by East Ventures, AC Ventures, and South Korea’s SV Investment. This investment marks one of Southeast Asia’s largest seed funding rounds to date for a hardware startup.

The funding round is also joined by other strategic investors including Northstar Group, Provident, AlfaCorp, Skystar Capital, Peak XV Partners (formerly known as Sequoia India and SEA), Openspace Ventures, Shinhan Venture Investment, BEENEXT, Kinesys Group, and M Venture Partners (MVP).

Founded in 2021 by ride-hailing operator veterans Raditya Wibowo and Arief Fadillah, MAKA Motors seeks to accelerate the adoption of electric motorcycles in Indonesia. The company aims to revolutionize the electric motorcycle industry by addressing the unique needs of the Indonesian market that have yet to be fully met by existing players. The company’s vision is to provide electric motorcycles that offer the perfect blend of driving range, power, usability, and durability at a competitive pricing compared to current bikes, catering specifically to the demands of Indonesian riders.

Indonesia, home to over 127 million motorbikes, stands as the third-largest global market for two-wheeled vehicles. The majority of these vehicles rely on gasoline as their fuel source, with a meager count of approximately 43,000 registered electric motorcycles. Given the staggering annual sales of 6 to 8 million new two-wheeled vehicles, there exists a big opportunity for electrification in this segment. Not only does it contribute to a greener environment, but it also aids Indonesian riders in reducing their daily expenses. 

Although the electric two-wheel vehicle (EV2W) industry in Indonesia is still in its infancy, numerous brands have introduced their own models while the government strives to promote further support, including tax rebates and business assistance. 

Acknowledging both the sector potential and growing competition, MAKA Motors prioritizes research and development. The company has heavily invested in its engineering team and R&D capabilities, fostering a strong commitment to innovation. This dedication enables MAKA Motors to produce superior products that outperform competitors, while also ensuring a streamlined cost structure.

“We are excited to partner with those who understand and support our R&D-first approach in our endeavors. By conducting our R&D process in-house and locally, we address the limitations faced by many current 2W EV companies who outsource their R&D and end up missing out on crucial user insights, control over their supply chain, and potential cost efficiencies. Eventually, we aim to lead the market with innovative solutions that meet the unique needs of Indonesian riders,” said MAKA Motors Founder & Chief Executive Officer Raditya Wibowo. “This significant funding not only validates our vision but also accelerates our mission to surpass the expectations of Indonesian riders with our electric motorcycles. We are committed to pushing the boundaries of driving range, power, usability, durability and affordability in the realm of two-wheeled electric vehicles.”

“Since the beginning we have conducted a rigorous in-house research and development process, recruiting top-notch team members with extensive experience working with leading automotive companies in Indonesia, Japan, and Germany in collaboration with world-class technical partners and suppliers. Beyond creating superior vehicles, we dream of building exceptional hardware engineering capabilities in Indonesia and bringing our brilliant local talents home to join us in our mission,” added MAKA Motors Co-Founder & Chief Technology Officer Arief Fadillah.

The funds raised in this seed round will enable MAKA Motors to scale its operations, expand its research and development capabilities and facilities, as well as accelerate the production of its innovative electric motorcycles. The company’s first mass-market product is currently in development and slated for launch in 2024, with its first batch of pilot vehicles ready for deployment this month. MAKA Motors will also build its factory in West Java starting later this year.

“We are excited to support MAKA Motors on the journey to revolutionize the automotive industry. We believe MAKA Motors exemplifies a commitment to sustainable mobility solutions, combining cutting-edge technology with environmental responsibility. With Raditya and Arief’s experience, execution capabilities and innovative designs tailored for Indonesian riders, we are confident in their ability to ride the growth of electric mobility and decarbonize transportation in Indonesia,” said Avina Sugiarto, Partner at East Ventures.

Michael Soerijadji, Founder and Managing Partner at AC Ventures, said, “ACV is excited to invest in and partner with MAKA Motors, a game-changer in one of the largest two-wheeler markets in the world. We believe in the company’s capacity to innovate and optimize its supply chain. We also have conviction about the team’s deep understanding of the local market, derived from extensive research and sectoral experience. Together with Raditya, Arief, and their team, we aim to champion the transition toward sustainable mobility in Indonesia.”

David Junghun Bang, Managing Partner at SV Investment, said, “At SV Investment, we are seeing a great potential in Southeast Asia as one of the fastest growing and most dynamic markets globally, and we believe Indonesia is leading that growth as the largest economy in the region. The EV sector is still at a very early stage in Indonesia, but we see the sector rising very rapidly in the near future backed by government initiatives and prominent players like MAKA Motors. Especially with Indonesia’s high usage of 2-wheelers, we believe the MAKA team is targeting the right segment of EV at the right timing.  Also, Korea is an advanced market in terms of EV technology, with numerous startups and conglomerates developing batteries, motors, etc. As a strategic partner, we hope to bridge MAKA Motors with relevant Korean players who can be of synergistic support for the company.”