Dat Bike, a Vietnamese startup with ambitions to turn into the highest electrical bike firm in Southeast Asia, has raised $2.6 million in pre-Collection A funding led by Jungle Ventures. Made in Vietnam with largely home elements, Dat Bike’s promoting level is its capacity to compete with gasoline motorbikes by way of pricing and efficiency. Its new funding is the primary time Jungle Ventures has invested within the mobility sector and included participation from Wavemaker Companions, Hustle Fund and iSeed Ventures.
Founder and chief govt officer Son Nguyen started studying learn how to construct bikes from scrap elements whereas working as a software program engineer in Silicon Valley. In 2018, he moved again to Vietnam and launched Dat Bike. Greater than 80% of households in Indonesia, Malaysia, Thailand and Vietnam personal two-wheeled automobiles, however the majority are fueled by gasoline. Nguyen informed TechCrunch that many individuals need to swap to electrical motorbikes, however a serious impediment is efficiency.
Nguyen mentioned that Dat Bike gives thrice the efficiency (5 kW versus 1.5 kW) and a couple of occasions the vary (100 km versus 50 km) of most electrical motorbikes out there, on the similar worth level. The corporate’s flagship bike, referred to as Weaver, was created to compete in opposition to gasoline motorbikes. It seats two folks, which Nguyen famous is a crucial promoting level in Southeast Asian nations, and has a 5000W motor that accelerates from zero to 50 km per hour in three seconds. The Weaver will be totally charged at a regular electrical outlet in about three hours, and attain as much as 100 km on one cost (the bike’s subsequent iteration will go as much as 200 km on one cost).
Dat Bike’s opened its first bodily retailer in Ho Chi Minh Metropolis final December. Nguyen mentioned the corporate “has shipped just a few hundred motorbikes to date and nonetheless have a backlog of orders.” He added that it noticed a 35% month-over-month progress in new orders after the Ho Chi Minh Metropolis retailer opened.
At 39.9 million dong, or about $1,700 USD, Weaver’s pricing can also be corresponding to the median worth of gasoline motorbikes. Dat Bike companions with banks and monetary establishments to supply customers twelve-month cost plans with no curiosity.
“These guys are competing with one another to place the rising center class of Vietnam on the digital monetary marketplace for the primary time ever and because of this, we get a really favorable charge,” he mentioned.
Whereas Vietnam’s authorities hasn’t carried out subsidies for electrical motorbikes but, the Ministry of Transportation has proposed new rules mandating electrical infrastructure at parking tons and bike stations, which Nguyen mentioned will enhance the adoption of electrical automobiles. Different Vietnamese corporations making electrical two-wheeled automobiles embody VinFast and PEGA.
One in all Dat Bike’s benefits is that its bikes are developed in home, with locally-sourced elements. Nguyen mentioned the advantages of producing in Vietnam, as an alternative of sourcing from China and different nations, embody streamlined logistics and a extra environment friendly provide chain, since most of Dat Bike’s suppliers are additionally home.
“There are additionally enormous tax benefits for being native, as import tax for bikes is 45% and for bike elements starting from 15% to 30%,” mentioned Nguyen. “Commerce inside Southeast Asia is tariff-free although, which signifies that we’ve got a aggressive benefit to increase to the area, examine to overseas imported bikes.”
Dat Bike plans to increase by constructing its provide chain in Southeast Asia over the following two to 3 years, with the assistance of buyers like Jungle Ventures.
In a press release, Jungle Ventures founding accomplice Amit Anand mentioned, “The $25 billion two-wheeler trade in Southeast Asia specifically is ripe for reaping rewards of recent developments in electrical automobiles and automation. We consider that Dat Bike will lead this cost and create a brand new benchmark not simply within the area however probably globally for what the following technology of two-wheeler electrical automobiles will look and carry out like.”