Electric Motorcycle Brand Dat Bike Raises $4 Million: Who’s Behind It, What’s It For and Is It a Game-changer?

Dat Bike Secures Investment from Leading Renewable Energy Enterprise

Dat Bike announces a $4 million convertible loan from InfraCo Asia, a member of the Private Infrastructure Development Group (PIDG). This investment will enable Dat Bike to double its production capacity through infrastructure expansion, equipment, and automation.

PIDG is an innovative infrastructure development and financing organization that encourages and mobilizes private investment for pioneering infrastructure projects in Africa, South Asia, and Southeast Asia. It aims to support economic development and poverty reduction and is funded by the governments of the UK, the Netherlands, Switzerland, Australia, Sweden, Germany, and the International Finance Corporation (IFC).

InfraCo Asia, a member of PIDG headquartered in Singapore, specializes in infrastructure development across South and Southeast Asia by providing capital and expertise. Its primary focus is on renewable energy sources such as solar, hydrogen, and wind, as well as agriculture.

Aside from its investment in Dat Bike, InfraCo Asia has been involved in notable projects, including the acquisition and rehabilitation of the Cốc San Hydropower Plant in 2012, the development of a 168MWp solar power plant in Ninh Thuận Province, and the investment in four clean water projects for four secondary cities in Vietnam. The company also has a presence in other countries, such as its joint venture with Radiance Renewables to develop renewable energy projects in India.

How Will the $4 Million Investment Be Utilized?

With the Vietnamese electric vehicle market booming, Dat Bike aims to produce high-performance electric vehicles at affordable prices. The $4 million loan will support the company’s goal of manufacturing 30,000 electric motorcycles in the next two years.

While this number is modest compared to established motorcycle brands in Vietnam (Honda Vietnam sold over 2 million motorcycles in 2023), it is a significant milestone for a startup founded in 2019. EMotorad, one of the prominent electric motorcycle startups in the world’s most populous market, sold 40,000 units in 2022.

The $4 million investment is, therefore, significant in helping Dat Bike transition from market introduction and product development to larger-scale production. The timing is also ideal, as the electric motorcycle market in Vietnam is experiencing exponential growth, with a market penetration rate of 16% in 2023—the highest in Southeast Asia. This number is expected to reach 40% by 2040.

According to calculations by entrepreneurs like Brett Fox (CEO of Touchstone Semiconductor), Jason M. Lemkin (CEO of Adobe Sign), and Kshitij Vichare (consultant at Wabtec Corporation), $4-5 million is typically enough to sustain a startup for two years, depending on its scale and industry. However, it is crucial to carefully manage these funds as expenses can quickly add up. Jason M. Lemkin shared that for his startup, $5 million was “pretty fragile.” Therefore, monitoring burn rate and seeking additional funding when necessary are essential considerations.

In reality, $4 million is not the first investment Dat Bike has attracted. To date, the Vietnamese electric motorcycle startup has successfully raised over $25 million. Founded by former Silicon Valley tech engineer, Mr. Nguyen Ba Canh Son, the company aims to become one of the leading manufacturers in Vietnam’s $8 billion market and the $25 billion Southeast Asian market.

Dat Bike has already made strides with the successful launch of four electric motorcycle models, including the recently introduced Quantum, priced at nearly $50 million VND, offering a range of up to 270 km, 7kW power, and fast charging. This range is comparable to that of a small electric car.