Omoway, a startup specializing in smart electric motorcycles, has successfully closed its seed and angel funding rounds. The company, founded by former executives from Chinese EV maker Xpeng, raised a multi-million dollar sum.

The funding round saw significant participation include ZhenFund, HongShan Capital Group, and Hui Capital, an investment firm founded by BYD co-founder Yang Longzhong.

Omoway’s founder, He Tao, and his core team also participated.

Established in 2024, Omoway’s focus on Indonesia is strategic, given the country’s burgeoning electric motorcycle market.

The newly acquired capital will fund the mass production of Omoway’s electric motorcycles. It will also advance its intelligent technology research and development efforts.

Omoway’s upcoming OMO X model will feature advanced rider-assistance systems and is slated to launch in Indonesia in 2026.

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🔗 Source: 36Kr

🧠 Food for thought

1️⃣ Electric motorcycle startups ride a significant market growth wave

OMOWAY’s funding success comes amid substantial projected growth in the electric motorcycle sector, with the global market expected to expand from $35.7 billion in 2024 to $44.9 billion by 20301.

This represents a 25.8% increase over six years, demonstrating strong investor confidence in the segment despite broader economic uncertainties.

The market is being driven by multiple factors: rising fuel prices, increasing maintenance costs for traditional vehicles, and growing consumer demand for sustainable transportation options1.

Urbanization trends are particularly significant, as densely populated cities create ideal conditions for smaller, agile electric vehicles that can navigate congested streets more efficiently than cars.

This market momentum helps explain why OMOWAY has attracted investment from prominent backers like ZhenFund and Sequoia Capital China, who likely see the startup positioned to capture value in this expanding market.

2️⃣ Strategic investor partnerships signal industry convergence

The involvement of Huiyou Capital in OMOWAY’s funding round represents a notable example of cross-industry collaboration in electric mobility.

Huiyou Capital was founded by Yang Longzhong, a co-founder of BYD – one of China’s largest electric vehicle manufacturers – creating a strategic connection between established EV giants and emerging startups in adjacent markets.

This reflects a broader industry trend where traditional automotive manufacturers are increasingly investing in or partnering with electric motorcycle ventures to diversify their sustainable mobility portfolios2.

Such partnerships provide startups like OMOWAY with more than just capital. They potentially offer manufacturing expertise, supply chain access, and technological know-how that can significantly reduce time-to-market for new products.

The involvement of established players in startups is particularly valuable in capital-intensive hardware sectors where production scale and efficiency are critical success factors.

3️⃣ Battery technology advancements enable new market entrants

OMOWAY’s entry into the smart electric motorcycle space is made possible by significant improvements in battery technology that have reduced many practical limitations of electric models1.

Battery advancements have delivered longer ranges and shorter charging times, addressing two critical consumer pain points that previously limited mainstream adoption of electric motorcycles2.

These technological improvements have lowered barriers to entry, creating opportunities for innovative startups to compete with established manufacturers by focusing on smart features and user experience rather than solving fundamental power storage challenges.

The timing of OMOWAY’s funding coincides with a period when the U.S. electric motorcycle market surged by 28% year-over-year in 20233, indicating that investors see the technology reaching a maturity point where consumer adoption is accelerating.

For OMOWAY specifically, this technological foundation allows them to focus their innovation on “smart” capabilities – potentially including AI-assisted riding systems, connected features, and other digital enhancements that differentiate their products in an increasingly competitive market.

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