Indonesian EV battery startup Swap Energy raises $7.2m
Khamila Mulia, Deal Street Asia, April 3rd 2023.
JAKARTA, Indonesia-Based Swap Energy, which provides battery-swapping solutions for two-wheeled electric vehicles (EVs), has raised about $7.2 million in a pre-Series A funding round led by Ondine Capital, according to regulatory filings.
The company had announced the round last month without disclosing the amount of capital raised.
Ondine Capital invested nearly $3 million in the round through two vehicles, showed Swap Energy's filings with Singapore's Accounting and Corporate Regulatory Authority (ACRA).
Other investors that participated in the financing include existing backers SBI Kejora Orbit Fund, which invested $2 million, Indonesian mining company PT Wahana Sentosa Cemerlang, and New Energy Nexus.
Randolph Hsu, the founder of Ondine Capital, confirmed the development, adding that the venture capital firm has secured a seat on the board of the Indonesian company. "The rationale behind this investment is quite straightforward: good team and good products fitting the market at the right time, especially the favorable policy in Indonesia," Hsu told DealStreetAsia.
"Our Taiwanese background and understanding of Nasdaq-listed [electric motorcycle maker] Gogoro made it easier for us to comprehend the nature and potential of this opportunity," he added.
DealStreetAsia has reached out to Swap Energy for comment.
Battery life is a crucial pain point for EV users. Swap Energy, which was founded in 2019, aims to solve this challenge by building infrastructure for two-wheeled EVs. The startup currently has more than 800 swap charging stations in 14 provinces.
In 2021, the company launched its electric motorcycle brand Smoot. A year later, Swap Energy and Smoot partnered with Grab and state-owned electric company PLN to develop an integrated electric vehicle ecosystem in Indonesia.
In March 2022, Swap Energy raised an undisclosed seed funding round led by Kejora-SBI Orbit with participation from several investors, including Living Lab Ventures, New Energy Nexus and Raksasa Capital.
According to DealStreetAsia's Data Vantage, Swap Energy CEO Irwan Tjahaja is the firm's largest shareholder.
As the world's top producer of nickel, which is a key component of EV batteries, Indonesia is pushing to become a global hub for EV production. The two-wheeler segment is leading the adoption as it is the most common vehicle used by Indonesians, accounting for over 80% of the total vehicles in the country.
Indonesia is aiming to produce 2.5 million electric motorbikes and 600,000 electric cars by 2030, in line with its commitment to reduce carbon emissions by 29% in the same period.
One of the crucial factors in boosting a shift to EVs is the development of infrastructure, including EV battery charging stations and battery swapping stations. Besides Swap, other key players in Indonesia's EV battery infrastructure space are Volta Indonesia and EVolt Charging Network.
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source: https://asia.nikkei.com