Movus Technologies Secures ¥2 Billion Lease Agreement in Indonesia to Boost Mobility Infrastructure

Movus Technologies Signs ¥2 Billion Lease Agreement in Indonesia

In a strategic expansion of its operations in Southeast Asia, Movus Technologies, headquartered in Tokyo, has secured a lease contract worth approximately ¥2 billion with an Indonesian conglomerate leasing company (name undisclosed) for its local subsidiary, PT Movus Technologies Indonesia. This agreement is a part of the company’s ambitious plan to ramp up its vehicle fleet to 10,000 units within the next two years.

This lease agreement follows shortly after Movus's latest Series B funding round, which raised ¥4.26 billion, marking a significant second phase in the company’s growth. As the only Japanese company officially partnered with Grab, Movus aims to provide the vehicles acquired through this agreement as part of an eco-car subscription service to drivers in Indonesia.

The Rationale Behind the Agreement: Addressing the Dual Bottleneck

In Indonesia, where public transport infrastructure such as railways and buses is underdeveloped, ride-hailing apps like Grab and Gojek have effectively stepped in to provide necessary transportation services. However, financial access for vehicle acquisition remains a severe challenge for individual drivers, with local financial institutions reporting a loan approval rate of less than 0.1%. Many individuals face an insurmountable barrier to becoming drivers due to these financial constraints, resulting in a chronic shortage in the supply chain of mobility providers.

Movus has been tackling this problem through its unique IoT devices and credit assessment model, which help alleviate access to finance for individuals. However, to scale the business further, it is essential for Movus to establish efficient vehicle procurement capabilities. This lease agreement aims to address the vehicle procurement challenges from the supply side, combining low-interest financing from the parent company in Japan with the local leasing firm’s vehicle acquisition networks and operational expertise.

Expected Outcomes of the Lease Agreement

The company anticipates several positive outcomes from this lease agreement:

1. Expanded Value to Drivers: By acquiring these vehicles, Movus intends to provide working opportunities to those who previously could not afford a vehicle, allowing many Indonesians to consider driving as a viable profession. This is particularly impactful, as drivers could earn up to five times the average blue-collar worker’s monthly income (approximately ¥20,000).

2. Increased Integration with the Grab Ecosystem: As the sole Japanese partner officially recognized by Grab, Movus is set to accelerate vehicle supply to the Southeast Asia’s leading ride-hailing platform, which boasts a market capitalization of ¥2 trillion and over 47 million monthly users. Beyond just vehicle provision, Movus plans to explore new services leveraging Grab’s data and customer base.

3. Further Business Expansion: With a goal of operating 10,000 vehicles in the coming two years, Movus aims to directly address the bottleneck in driver supply for Indonesia's largest ride-hailing platform, marking a significant milestone in the development of mobility infrastructure across Southeast Asia.

Hiring Initiative: Expanding Domestic Recruitment

With consistent population growth and economic expansion forecasted for Southeast Asia, Indonesia’s GDP is projected to escalate to approximately five times its current value by 2050, positioning it as the world's fourth-largest economy. In alignment with expanding its customer base domestically, Movus is launching an intensified recruitment drive in Japan to strengthen its organizational framework, including BizDev, product, and engineering roles.

The company welcomes individuals eager to gain experience in building an industry from the ground up in a frontier market like Southeast Asia, which presents opportunities that are challenging to find in a mature economy like Japan.

More about Recruitment: Check out Movus’s recruitment page and upcoming events.

Moving Forward: A Message from Movus CEO Toru Sakai

On the realization of this lease agreement, Movus Technologies CEO Toru Sakai expressed heartfelt gratitude to all supporters. He believes this contract reflects the pressing issues at hand, the potential for developing social infrastructure in emerging economies, and the soundness of business operations.

Alongside the recent funding of ¥4.26 billion during their Series B, this lease agreement will accelerate Movus’s mission. Despite challenges posed by factors such as the emergence of AI, decreasing population, and yen depreciation, Movus remains committed to generating value through real industries overseas, thereby contributing positively to both Japan and developing nations.