Indonesia's Ilectra Motor Group (IMG), popularly known as ALVA, has finalised a US$ 50 million Series B funding round, led by Horizon Ventures, the electric two-wheeler maker announced on August 21st.

IMG's parent company Indika Energy, HH-CTBC Partnership L.P (Foxconn Co-GP Fund), and Brama One Ventures (a family office) also joined the round. The fresh capital will be used to accelerate ALVA's product development and for scaling up network expansion in order to serve more consumers all over Indonesia.

It was reported in May 2023 that ALVA is said to be raising up to US$ 50 million in a fresh funding round as it looks to ramp up its expansion plans. In a press conference earlier that month, Indika Energy's director of group chief of investment Purbaja Pantja also said that the IDX-listed firm and other investors are looking to allocate around US$ 16 million to ALVA.

Since it was established in May 2022, ALVA has launched two EV models-ALVA One and ALVA Cervo which was rolled out in May 2023. IMG spent US$ 1.9 million on developing Alva One, its first motorcycle, in January-March 2023. For the entire year, the expenditure is expected to be around US$ 17.8 million.

Supporting its end-to-end operations, IMG's manufacturing facility at Cikarang, West Java, has been operating since Q4, 2022. Furthermore, ALVA Experience Center in Jakarta and ALVA Studio in Bali are in full operation to support its consumer brand experience, sales and after-sales services.

Indonesia, the third-largest market for two-wheelers globally, has a large potential for electric two-wheelers (E2W). A number of Indonesian conglomerates are betting big on the sector given its long-term potential. Besides Indika Energy, other companies that have already ventured into the EV space are TBS Energi Utama which teamed up with tech giant GoTo to establish Electrum; Djarum Group with its electric motorcycle brand Polytron; Wijaya Karya with Gesits and Bakrie Group-backed VKTR.

Quite a few startups have already mushroomed in the sector and have also attracted VC funding. In April this year, DealStreetAsia reported that SWAP Energy raised about US$ 7.2 million in a pre-Series A funding round led by Ondine Capital. Meanwhile, e-mobility startup Charged Indonesia made headlines last September when it bagged US$ 4.5 million in funding.