A short-term debt that can be converted into equity in the company at a future date.
Our investment in Dat Bike has supported its growth, mainly funding the enhancement and expansion of its manufacturing facilities and distribution channels. Over 30,000 high-performance, long-range bikes produced by Dat Bike are expected to be adopted in 2025 and 2026, avoiding close to 26,000 tCO2e.
We were introduced to Dat Bike through the Climate Finance Accelerator Viet Nam programme, funded by the UK Government.
The programme supports energy transition-related climate startups with access to financing. Having visited Dat Bike’s manufacturing facility, reviewed their technology, met with their leadership team and understood their vision, we recognised that they were a strong fit for our investing mandate and were at a stage where our participation could add significant value.
Apart from being closely aligned to our climate priorities and plans, Dat Bike was PIDG’s first corporate investment in Asia and our first e-mobility transaction in Southeast Asia.
The corporate investment acts as growth capital for operating companies that have a strong track record.
In 2024, Dat Bike was gearing up to launch the Quantum — its first high-speed, long-range, mass-market electric motorbike. The product’s features were impressive, but its success was uncertain. Vietnam’s e-bike market was still emerging, and investors remained cautious about what seemed a high-risk opportunity.
Rather than taking an equity stake, we chose a convertible loan — a balanced way to keep Dat Bike’s momentum through the Quantum’s launch and attracting investors once traction was proven. Due to tax and regulatory factors, we modified our usual equity structure and reduced the hands-on role PIDG often plays in early-stage ventures. This shift required a deeper understanding of the team, their track record, and the Quantum’s potential.
Yes! We are considering a similar deal structure for another transaction in Laos. The convertible loan is an ideal solution when you want to control the risk exposure in early-stage high-growth companies.
Although a convertible loan’s quantum is lower – to make the risks more manageable – this influx of cashflow is often the boost that companies need to grow into an attractive investment asset for future investors.
Looking back, we could have closed the deal sooner had we brought key stakeholders to Dat Bike’s factory in Ho Chi Minh City earlier.
We began discussions in mid-2023, but it was only in early 2024, after Covid travel restrictions eased, that our technical and finance teams could finally meet Dat Bike’s management in person. Seeing the operation firsthand changed everything — what once looked like risk on paper became opportunity. The visit built confidence, aligned perspectives, and from there, we moved quickly to get the deal done.
