Vmoto invest in Charged Asia

On 6 December 2022, the Company announced that it had entered into a strategic technology and investment agreement with Charged Asia Pte Ltd (“Charged Asia”), which owns 100% of PT Industri Charged Mobilitas and PT Charged Tech Indonesia (“Charged Indonesia”), a scale up electric motorcycle technology company in Indonesia focused on providing sustainable mobility options and Electric Vehicle as-a-service (EVaaS) to Indonesian customers.

The Indonesian motorcycle industry is the third largest in the world after India and China, in which motorcycle are used for private as well as commercial purpose including ride-hailing and delivery services. Currently, more than 120 million motorcycles operate in Indonesia, of which a small portion are estimated to be electric motorcycles with the numbers of electric motorcycle continue to grow.

With Charged Asia operates in Indonesia, the third largest motorcycle market in the world capable of distributing between 5 million and 8 million new motorcycles every year, the Company is very excited about this new strategic relationship.

As part of the technology and investment agreement, Vmoto has agreed to invest up to USD3 million (approximately A$4.5 million) (“Subscription Price”) by way of credit offsets on batteries and electric vehicles supplied from Vmoto to Charged Asia or its subsidiaries over a 3-year period (“Credit Period”). In return, Vmoto will receive equity of 8% in Charged Asia, which currently has an investment valuation of USD38 million. Regardless of whether the available credit offsets are fully utilised during the Credit Period, upon the expiry of the Credit Period, the Subscription Price shall be deemed to have been satisfied in full by Vmoto.

In addition, Vmoto will act as core technology partner of Charged Indonesia, providing all necessary technical assistance to Charged Indonesia in relation to electric motorcycles products.