Dat Bike, a leading electric motorbike manufacturer in Vietnam, has secured a $4 million convertible loan from InfraCo Asia to enhance its production capacity, support the deployment of over 30,000 electric bikes, and promote sustainable green transportation.
Dat Bike, a rapidly growing electric motorbike manufacturer in Vietnam, has secured a $4 million convertible loan from InfraCo Asia, a member of the Private Infrastructure Development Group (PIDG). This investment marks a significant milestone in Dat Bike’s journey, enabling the company to double its production capacity through facility expansion, tool optimization, and increased automation.
Dat Bike stands out in Vietnam’s electric vehicle market with its high-performance products offered at reasonable prices. This unique combination has garnered strong interest from both investors and customers. As the only vertically integrated electric motorbike manufacturer in Vietnam, Dat Bike controls the entire production process, from research and development to vehicle assembly. The company is committed to building a domestic supply chain and fostering innovation, with over 90% of components manufactured locally.
Within just five years, Dat Bike has launched four new models, each designed to provide practical value to consumers while driving growth for the business. The company continuously updates firmware and introduces new product enhancements, demonstrating a unique and effective strategy that keeps users at the forefront of cutting-edge technology.
The $4 million loan from InfraCo Asia is expected to facilitate the deployment of over 30,000 electric motorbikes in the next two years, with the potential to reduce emissions by nearly 26,000 tons of CO2e (carbon dioxide equivalent) annually. This contribution will significantly support Vietnam’s efforts to lower carbon emissions. Additionally, this project is expected to create 30 short-term jobs and 29 long-term positions, with a focus on gender diversity, as 24% of these roles are projected to be filled by women. This initiative aligns with two United Nations Sustainable Development Goals: SDG 11 – Sustainable Cities and Communities, and SDG 13 – Climate Action.
Karen Tsang-Hounsell, Investment Director of InfraCo Asia, emphasized the strategic importance of this partnership: “Providing growth capital to operating companies to support climate action is a key part of our PIDG 2030 Strategy, which aims to foster sustainable development in emerging markets across Asia and Africa. We believe Dat Bike’s potential will accelerate electric vehicle adoption and shape a greener, more efficient future for transportation through their innovative solutions.”
Son Nguyen, CEO of Dat Bike, expressed excitement about the growth prospects enabled by this funding: “With this significant support, Dat Bike will accelerate the expansion of our production scale to meet the growing demand for electric motorbikes in Vietnam. As the fastest-growing company in the industry, we are uniquely positioned to lead the green transportation revolution across the region. Dat Bike’s growth has demonstrated the potential of Vietnam’s electric vehicle supply chain.”
Vietnam’s electric motorbike market is experiencing rapid growth, with an annual market penetration rate of 16% in 2023, the highest in Southeast Asia. This figure is expected to reach 40% by 2040. Dat Bike has raised over $25 million to date, underscoring the company’s influence and market potential.
Electric motorbikes produce zero emissions during operation, making them a more environmentally friendly option compared to internal combustion engine vehicles. Furthermore, the rechargeable lithium-ion batteries used in Dat Bike’s electric vehicles are more easily recyclable than the hazardous lead-acid batteries found in gasoline-powered vehicles and previous generations of electric bikes. This is a crucial factor in promoting sustainable green transportation in Vietnam.
