Dat Bike Raises $2.6M to Expand Vietnamese Electric Motorbike Market

Dat Bike Secures $2.6 Million to Lead Southeast Asia's Electric Motorbike Revolution

Dat Bike, a Vietnam-based startup aiming to become the leading electric motorbike manufacturer in Southeast Asia, has successfully closed a $2.6 million pre-Series A funding round. This investment was spearheaded by Jungle Ventures, marking their inaugural venture into the mobility sector, with additional participation from Wavemaker Partners, Hustle Fund, and iSeed Ventures.

Locally Manufactured for Competitive Advantage

A key differentiator for Dat Bike is its commitment to local production. The motorbikes are built in Vietnam, utilizing predominantly domestically sourced components. This strategy allows the company to effectively compete with traditional gasoline-powered motorbikes on both price and performance.

The company’s founder and CEO, Son Nguyen, initially honed his bike-building skills while working as a software engineer in Silicon Valley. He relocated back to Vietnam in 2018 to establish Dat Bike, recognizing a significant market opportunity.

Addressing the Demand for High-Performance Electric Motorbikes

Across Indonesia, Malaysia, Thailand, and Vietnam, over 80% of households rely on two-wheeled vehicles for transportation. However, the vast majority of these are gasoline-fueled. Nguyen observed a growing consumer desire for electric alternatives, but identified performance as a major barrier to widespread adoption.

Dat Bike addresses this challenge by offering significantly enhanced performance compared to existing electric motorbikes. Their models deliver three times the power (5 kW versus 1.5 kW) and double the range (100 km versus 50 km) at a comparable price point.

Introducing the Weaver: A Competitive Flagship Model

The company’s primary offering, the Weaver motorbike, is specifically engineered to rival gasoline-powered counterparts. Designed to accommodate two passengers – a crucial feature in Southeast Asian markets – the Weaver boasts a powerful 5000W motor capable of accelerating from 0 to 50 km/h in just three seconds.

A full charge, achievable via a standard electrical outlet in approximately three hours, provides a range of up to 100 km. Future iterations of the Weaver are projected to extend this range to 200 km on a single charge.

Rapid Growth and Strategic Partnerships

Dat Bike inaugurated its first retail store in Ho Chi Minh City last December. Nguyen reported that the company has already fulfilled “a few hundred motorbike shipments” and currently maintains a substantial order backlog. Following the store’s opening, the company experienced a 35% month-over-month increase in new orders.

Priced at 39.9 million dong (approximately $1,700 USD), the Weaver is competitively positioned against the average cost of gasoline motorbikes. Dat Bike has established partnerships with banks and financial institutions to provide customers with 12-month, interest-free payment plans.

“Financial institutions are actively seeking to integrate Vietnam’s emerging middle class into the digital financial landscape,” Nguyen explained, “resulting in highly favorable financing rates for our customers.”

Favorable Regulatory Environment and Local Supply Chain

Although the Vietnamese government has not yet implemented subsidies for electric motorbikes, proposed regulations from the Ministry of Transportation mandate the installation of electric infrastructure at parking facilities and bike stations. Nguyen anticipates this will significantly accelerate the adoption of electric vehicles.

Other Vietnamese companies involved in the electric two-wheeled vehicle sector include VinFast and PEGA.

A significant advantage for Dat Bike lies in its in-house development and locally sourced parts. Nguyen emphasized the benefits of manufacturing within Vietnam, including streamlined logistics and a more efficient supply chain due to the proximity of suppliers.

“Local manufacturing also provides substantial tax benefits,” Nguyen stated. “Import duties on complete bikes are 45%, while parts are subject to taxes ranging from 15% to 30%. However, trade within Southeast Asia is tariff-free, giving us a competitive edge when expanding regionally compared to imported brands.”

Expansion Plans and Investor Confidence

Dat Bike intends to expand its supply chain throughout Southeast Asia over the next two to three years, supported by investments from firms like Jungle Ventures.

Amit Anand, founding partner at Jungle Ventures, commented, “The $25 billion two-wheeler market in Southeast Asia is poised to benefit greatly from advancements in electric vehicles and automation. We are confident that Dat Bike will spearhead this transformation and establish a new standard for the next generation of electric two-wheeled vehicles, both regionally and globally.”