ETRAN recently closed a Series A funding round worth 3.5 million US dollars or over Bt100 million from two major investors including N.D. Rubber Public Company Limited (NDR), a major Thai manufacturer and distributor of motorcycle tires listed on the Market for Alternative Investments (MAI) and an angle investor.
The new funding is a vote of confidence in ETRAN’s product development capability and the growing trend for electric vehicles (EV). The newly injected fund will help ETRAN commercialize and go to market. Offering ETRAN electric motorcycle to a broad group of customers, including the growing environmentally-conscious riders.
- The Science Park mission of fostering Thai innovations
- Industrial operators invited to see proof of 5G innovations at work
This year, ETRAN plans to launch two models of clean motorcycles: KRAF for general users and MYRA for delivery riders. The company will also expand its network of ETRAN Power Stations to 100 locations in Bangkok within 3 years, to support motorcyclists and particularly delivery riders. This new round of capital will also be reinvested into building a world-class manufacturing facility for high-performance, safe, and environmentally-friendly electric motorcycles.
ETRAN is aspired to capture 50% of the electric motorcycles market share in Thailand by 2025 with sales of over 100,000 units.
Soranun Choochut, CEO, ETRAN (Thailand) explained that ETRAN electric motorcycles are designed to Drive the Better World through offering product that is:
1. Clean: Committed to clean energy and building thriving and sustainable electricmotorcycle ecosystems
2. Efficient: Develop high output, low environmental impact electric motorcycles
3. Equitable: Promoting equality with ETRAN electric motorcycles; powered by clean energy, low operating cost, and offering higher income earning potential for riders.
In 2020, ETRAN PROM was the world’s first electric motorcycle designed specifically as public service vehicles, and the “reddot winner 2020 innovative product: by Red Dot Design Awards. ETRAN also received a research grant from the Office of National Higher Education Science Research and Innovation Policy Council (NXPO), with the aim of advancing electric motorcycle technology in Thailand
ETRAN KRAF, which launched in a limited edition in 2019, has been warmly welcomed by motorcyclists who are interested in environmentally-friendly clean energy. ETRAN is enhancing road safety technology and bringing additional zest to motorcycling, to give a better experience to users and society, as well as developing manufacturing processes to be maximally environmentally friendly, with a target to start deliveries at the end of 2021.
This year, ETRAN is targeting the delivery rider segment with the ETRAN MYRA, a vehicle especially designed for delivery services. It has a range of 180 km on a full charge, a top speed of 120 km/h, and a focus on modifications to carry add-on equipment such as cargo boxes, refrigerators, monitoring equipment and transportation network management systems. It comes with a system to swap batteries, the ETRAN Power Stations, installed at 100 locations in Greater Bangkok. The goal is growth in environmentally friendly last-mile delivery to over 10,000 vehicles by 2024.
According to its business operation plan, ETRAN aims for 400 – 500 million baht revenue in 2022 and steps up to Bt1,000 million in 2023.
Archawat Chareonsilp, Executive Chairman of ETRAN (Thailand) reported that Thailand’s ambition is to become the electric vehicle hub of Southeast Asia. He believes that all the necessary ingredients are coming together: 1. Clear policy direction, through the National Electric Vehicle Policy Committee (EV Board). The goal is to make Thailand into a hub for EVs in ASEAN, with a target of 1.8 million electric motorcycles on the roads within 3 years. 2. Manufacturers are starting to feature EVs more in their product development and manufacturing plans in domestic market. ETRAN is fully prepared to be a leading operator in powering Thailand to become the complete EV hub. 3. Consumers recognize the importance of EV in improving the environment. Today the EV technology has become more mature, giving consumers the necessary confidence and ability to own and enjoy the new EV experience that is nicer, cleaner, and better.
To prepare for the future growth of the segment, ETRAN is transforming from a startup to an innovative enterprise. A brand new Board of Directors was elected to ensure that ETRAN has access to the capability and experience necessary to pursue sustainable growth. Eyeing the public listing, ETRAN’s vision is beyond a mere manufacturer of electric motorcycles. It aims to lead the transformation of the automotive industry to play a big part in driving toward a sustainable future.
The new members of the Board of Directors:
1. Sirot Setabandhu, Managing Partner of Exformat Co., Ltd., a former investment banker with over 25 years of experience in finance and investment in both public and private sector from JPMorgan to the Finance Ministry
2. Thiti Tuangsithtanon, Managing Director of Dole Packaged Foods, with over 20 years of experience in business development and marketing both in Thailand and abroad, with experience working with leading brands such as Coca-Cola, Mars and Royal Canin.
3. Tanva Mahitivanichcha, Partner at Grant Thornton, Thailand, with over 15 years of experience in legal and tax
Chaiyasit Samrittivanicha, Managing Director of N.D. Rubber PCL. (NDR) noted that a meeting of the company’s board passed a resolution to approve the acquisition of 157,500 ordinary shares in ETRAN Thailand, with par value of Bt100, at 382.22 baht each, giving the company a 35% stake in ETRAN’s registered capital, with a total value of Bt60.20 million. The company would pay for ETRAN’s ordinary shares by issuing its own recapitalization shares in a private placement instead of cash, not exceeding 31.5 million shares at a par value of Bt1 per share and an offer value of Bt2.72, a Bt60.20 million Share Swap at a rate of 140.52new NDR shares per 1 new ETRAN share.
The investment in ETRAN is consistent with NDR’s policy to look for businesses with potential for growth and a new S-curve. The company sees that the electric vehicle industry is currently at the start of a growth cycle. This joint investment will diversify the company’s business, spread business risk and synergize with the core business. It will also support continuous revenue growth for the company in the future, with the expectation that ETRAN will start delivering both revenue and earnings from 2022 onwards.
Join in being part of Drive the Better World with electric motorcycles for sustainability at www.etrangroup.com
