Ahmedabad-based electric motorcycle startup Matter has raised $25 million in a growth equity round. The funding will support its expansion plans, including increasing production capacity to 5,000 vehicles per month by the end of the financial year.
TL;DR
- Matter raises $25M to scale electric motorcycle production and retail network.
- The funding will help Matter compete with established players like Tork Motors and Ultraviolette.
- Matter plans to expand its production capacity and develop new models based on its AERA platform.
What happened
Matter, an Ahmedabad-based electric motorcycle maker, has raised $25 million (around Rs 250 crore) in a growth equity round. The round was backed by existing investors including Helena, Capital 2B, Japan Airlines, TransLink Innovation Fund, and the Shakopee Mdewakanton Sioux Community (SMSC).
This follows a $35 million Series B round in July 2024, led by US-based venture capital firm Helena. With the latest round, Matter has raised a total of more than Rs 1,000 crore ($105 million).
The company plans to use the fresh capital to expand its distribution network, increase manufacturing capacity, and develop new products. Matter started manufacturing in October 2024 and has produced around 1,500 to 1,600 vehicles so far.
Why it matters
The funding will enable Matter to increase its monthly production capacity from nearly 1,000 vehicles to 5,000 by the end of the financial year. This significant scaling will help Matter compete more effectively in the premium electric motorcycle segment.
Matter plans to expand its retail network from 30 dealerships across 21 cities to around 50 by the end of the year, with a focus on western and southern India. The company also aims to add around 100 more touchpoints next year.
Matter is developing four new motorcycles based on its AERA platform, targeting the 150cc to 200cc segment. These models are expected to be priced between Rs 1.6 lakh and Rs 2.2 lakh, positioning Matter to compete with established players like Tork Motors, Ultraviolette, and Revolt.
Key facts
- Matter raised $25 million in a growth equity round, according to the company.
- The company has raised a total of more than Rs 1,000 crore ($105 million) to date.
- Matter plans to increase production capacity to 5,000 vehicles per month by the end of the financial year.
- The company aims to expand its retail network to around 50 dealerships by the end of the year.
- Matter is developing four new motorcycles based on its AERA platform, priced between Rs 1.6 lakh and Rs 2.2 lakh.
- The new models will target the 150cc to 200cc segment, competing with Tork Motors, Ultraviolette, and Revolt.
Context
The electric vehicle (EV) sector in India is witnessing significant growth, with investors increasingly backing startups in the space. Matter's latest funding round reflects the growing interest in EV and mobility startups, as highlighted in the recent startup funding report by SiliconIndia.
Matter's expansion plans and product development are crucial for competing in the premium electric motorcycle segment. The company's focus on scaling production and retail networks will be key to its success in a competitive market.
