Vietnam battery, EV maker nets $3 mln from ADB Ventures, others

Selex, a Vietnamese maker of electric two-wheelers and battery packs, has raised $3 million in a convertible note round from the Asian Development Bank’s venture capital arm ADB Ventures and other investors.

ADB said Thursday that ADB Ventures has signed a deal to invest in the Hanoi-based startup to reduce carbon emissions in high-usage applications such as last-mile cargo and passenger transport in Vietnam. It did not disclose ADB Ventures’ investment capital.

“The electrification of road transport will have a profound impact on the automotive manufacturing and logistics sectors in Southeast Asia. We are proud to have been part of Selex’s journey from the very beginning, and look forward to helping it to become an important regional player in the sustainable transport market in coming years,” said Suzanne Gaboury, ADB director general for private sector operations.

Selex CEO Nguyen Huu Phuoc said, "ADB’s unwavering support reaffirms our common goal of combating climate change and provides an important boost to our business. This investment will provide us with a strong foothold in Vietnam and a platform for our expansion into other parts of the region.”

Vietnamese venture capital firm Touchstone Partners and two foreign investment funds are the co-investors in the round like ADB Ventures.

In December 2021, ADB Ventures provided a $200,000 grant to Selex with an option to make an equity investment in the company.

ADB Ventures invests in early-stage technology companies that have significant potential to scale and deliver climate impact in emerging Asia and the Pacific. Its investors include Finland’s Ministry for Foreign Affairs, the Government of South Korea, the Korea Venture Investment Corporation, the Clean Technology Fund, and the Nordic Development Fund.

Each gasoline motorbike replaced by a Selex electric two-wheeler can cut the emission of 0.45 tons of carbon dioxide equivalent a year, says ADB. The company also aims to utilize the fund to expand its two-wheeler production lines and set up battery-swapping systems in key cities in Vietnam, solidifying Selex’s position as the nation's first and largest battery-swapping network provider.

Established in 2018, Selex specializes in producing electric two-wheelers and swappable battery packs that are purpose-built for large applications, including last-mile cargo delivery. Selex’s existing clients include regional delivery aggregators, such as Lazada and Grab, which require a single solution provider that can facilitate their transition to a cost-effective and reliable electric vehicle fleet with charging infrastructure to support their operations.