Selex Motors, smart electric motorbike and battery swapping innovator, powers up with $2.1 million seed investment round led by Touchstone Partners
Co-Investors include ADB Ventures and Nextrans
Investment marks Touchstone’s first move into backing hardware IP
Capital raised will enable Selex to expand R&D, scale-up manufacturing, and early customer deployment
Ho Chi Minh City / Hanoi, 19 January 2022 – Selex Motors JSC, a start-up developing and manufacturing smart electric motorcycles (EMs), battery packs and battery swapping system, announced today that it has closed a seed investment round totaling US$2.1 million. Touchstone Partners led the round, which also included investors such as ADB Ventures, the venture investment arm of the Asian Development Bank, and Nextrans, one of the most active Korean venture capital investors in Vietnam. Selex said it would use the capital to expand its research and development operations, expand manufacturing capacity at its new factory in the Hanoi area, and start deployment with its early customers.
Anyone remotely familiar with modern Vietnam knows the importance and ubiquity of motorbikes, with over 50 million on the road transporting people and goods in cities and rural areas. It is the fourth-largest motorbike market in the world (after China, India, and Indonesia). Vietnam’s motorbikes burn approximately US$5 billion in gasoline every year and contribute half of the vehicular carbon emissions. While legacy motorbike manufacturers have announced plans to introduce more models of EMs, they have focused on the B2C market for passenger use, and to date, there has been limited consumer adoption. Less visible is the B2B market, particularly the logistics sector. Motorbikes are used extensively in the “last-mile delivery” delivery phase, and it is this market that Selex is initially focused on to meet the demand for EMs, which is estimated to be growing 30% per year.
Selex’s business has three important competitive advantages to meet this need. First, its EMs are purpose-built to serve the logistics sector, able to transport heavier and bulkier loads than passenger bikes converted for the function. They are equipped with proprietary IoT technology and modern fleet management capabilities to further improve productivity. Second, Selex is able to offer its products at competitive prices and significant cost savings, including 50% maintenance costs and 25% on fuel costs, thanks to its deep vertical integration. Third, its proprietary battery swapping solution allows customer to add range flexibly in only a minute, an impressive re-filling rate that rivals even traditional gasoline pumping and ensures drivers can make the most of their working hours. The system is open-network and is built around a patented, highly compatible lithium-ion battery pack that can be shared among vehicles of different brands – the company believes they are compatible with 80% of EMs on the road toady – via its battery swapping network.
Selex has already entered partnerships with Viettel Post, a leading parcel courier in Vietnam with thousands of business locations nationwide, and Lazada Logistics, a logistics arm of e-commerce giant Lazada, to electrify their delivery fleets and setup battery swap points. With the funding, Selex is setting up a new factory to manufacture both vehicles and battery packs under one roof, making it among the pioneers in Southeast Asia capable of developing and manufacturing EVs, battery packs and swapping systems in-house. With its new production facility established, the company also plans to expand to other Southeast Asian countries in the near future.
Selex electric motorbike for delivery and automatic battery swapping station
Selex was founded in 2018 by Nguyen Nguyen (CEO/CTO), Hai Nguyen (Chief Mechanical Engineer), and Quang Nguyen (Chief Software Engineer). Nguyen and Hai, both Vietnam Education Fellows, met at the University of Michigan at Ann Arbor, where they both earned PhDs in Mechanical Engineering. Nguyen, an expert in EV, went on to work for companies in the automotive and defense sector in the U.S., Malaysia, and Vietnam, while Hai, a mechanical expert, applied his knowledge in the automotive industry, including work stints for Ford and GM. Quang is an IoT/software engineering expert with more than 12 years of experience, having worked as chief software engineer for an Israeli defense company.
Mr. Nguyen Nguyen, Co-Founder and CEO, said: “Hai and I both were very fortunate to be able to pursue our educations at one of the top universities in the United States and then to have the opportunity to gain experience working at leading global companies. But we always shared a dream to apply our knowledge and experience back home in Vietnam and to play a part in driving sustainable development in the country and the world. Along with Quang and the rest of our talented team, we’re able to do just that with Selex. Our innovative and patented technologies are not just environmentally friendly but also practical and cost-effective. We are pleased that Touchstone, along with ADB Ventures, Nextrans, and the other investors have confidence in our solutions, team, and our ability to execute on our business plan.”
Ms. Tu Ngo, General Partner of Touchstone Partners, commented: “Selex really encapsulates what we look for when choosing a start-up: smart and experienced founders who are working to address a pain point with ambitious yet practical solutions that also have a positive impact on the environment and society. There are few larger or more urgent challenges facing the world today than climate change, and Selex has identified an unserved and growing market where it can make an impact. We are excited to invest in Selex, which is our first hardware IP investment, and are proud to be on this journey with them as they work to realize their mission.”
About Selex
Selex aims to be a leading electric vehicle brand in Southeast Asia by developing and manufacturing sustainable products and solutions that meet the evolving needs of businesses and consumers. Its patented innovative technologies and talented engineers and designers with global experience and deep understanding of the local market will enable it to play a key part in building a better future for Vietnam and the world. More information about Selex may be found at www.selex.vn or email to: info@selex.vn
About Touchstone Partners
Touchstone Partners is a Vietnam-focused venture capital firm that aims to assist talented and driven founders to realize the potential of their businesses by applying their deep understanding of the Vietnamese market and utilizing a global network of connections.
Current investment areas include fintech, real estate, health technology, educational technology and technology initiatives that improve the efficiency of the value chains of important industries such as production and agriculture. Touchstone Partners aims to promote positive social development and set high standards for venture capital in Vietnam, proving that Vietnamese startups can deliver significant technology innovation and have a meaningful impact on society. Touchstone Partners’ investment capital comes from Pavilion Capital, Vulcan Capital, and several major governmental and private financial institutions in the region and the world.
For further information, please visit: www.touchstone.vc or email to: hello@touchstone.vc.