Charged Asia, a pioneering electric vehicle (EV) startup based in Singapore, has announced its successful capital raise of up to $40 million from Geo Energy, a prominent energy provider listed on the Singapore Exchange (SGX). This strategic infusion of funds will be executed through a combination of convertible loans and share placements to propel Charged Asia’s ambitious growth plans, notably its entry into the Vietnamese market.
The fundraising development revealed recently is anticipated to conclude by the culmination of the following year, according to Joel Chang, CEO of Charged Asia, as conveyed to DealStreetAsia.
Established in 2022, Charged Asia’s operations are centered in Indonesia, where it secured a $4.5 million investment from DeClout Ventures the preceding year. Beyond Indonesia, the company has its sights set on Vietnam, a market that has shown keen interest in its offerings.
“We have been receiving quite a lot of interest from potential local partners in the region as many closely follow our Indonesian market reception and adoption,” the CEO remarked. The launch of their electric bikes in Vietnam is imminent, bolstered by a strong local partnership. The company’s strategic roadmap also includes introducing new models by the year’s end, reflecting its commitment to diversified growth.
Central to Charged Asia’s trajectory is its focused commitment to expanding within Southeast Asia, bolstering the ongoing energy transition initiatives within the region. Joel underlined this vision: "Geo Energy Resources, a leading energy provider, has provided strong commitment towards our future growth, highlighting its forward-looking pledge to energy transition.”
The synergy between Charged Asia and Geo Energy is set to play a pivotal role in driving the startup’s expansion. Joel elaborated, “Geo Energy’s networks and connections will be instrumental for us.” While invigorating Charged Asia’s trajectory, this alliance holds the potential for Geo Energy to diversify its income streams and embrace international markets while aligning with its sustainability and Environmental, Social, and Governance (ESG) objectives.
Charles Antonny Melati, Executive Chairman and CEO of Geo Energy, articulated the collaboration’s significance by stating, “In alignment with our long-term strategy, we are committed to investing in sustainable innovations that enable us to access a broader range of international funding options.”
Geo Energy’s involvement extends beyond financial support, as the partnership aims to propel Charged Asia’s ascent to a prominent role in the electric vehicle industry across the Asia-Pacific Region. “The group maintains an option to enter into further agreements with Charged Asia to increase its capital investment, which will make the group the majority shareholder of Charged Asia,” Melati continued.
Charged Asia’s remarkable journey is exemplified by its “zero-energy” production facility in Southeast Asia’s largest market. Presently, the startup boasts a range of three two-wheeler electric vehicle models, with prices spanning from 33 million to 46 million rupiah ($2,157 to $3,000). With over 1,000 electric motorbikes already on the roads, the company aims to catapult this number to 10 million over the next decade, solidifying its status as an electric mobility leader.
Joel expounded on the company’s production capacity, sharing, “Our factory is now in phase one; we can go to phase two and three where we’ll be able to produce up to half a million to 800,000 units a year. But that’s for next year and the year after.”
The Geo Energy Group’s transformation from an energy corporation into a major EV player is showcased through its investment in Charged Asia. This shift mirrors Indonesia’s broader vision to emerge as a global hub for EV production and manufacturing, driven by its rich nickel reserves, a pivotal component in EV batteries.
The Indonesian landscape, dominated by two-wheeler vehicles representing approximately 87% of passenger vehicles, underscores the immense potential for EV adoption in this segment. With numerous players entering the electric vehicle market, Charged Asia’s collaboration with Geo Energy positions it to seize a significant share of this burgeoning landscape. As Charged Asia advances its expansion into Vietnam and beyond, the stage is set for a transformative shift in the regional EV industry.