Indian electric two-wheeler startup Matter has successfully raised ₹240 crore (USD 25 million) in a recent funding round. The company plans to utilize this capital to significantly expand its manufacturing and supply chain capabilities while preparing to launch four new electric bikes over the next two years. This strategic move aims to solidify Matter's position in the rapidly evolving Indian EV market.

  • Matter Electric has secured ₹240 crore (USD 25 million) in fresh funding.
  • The company plans to launch four new electric bikes within the next 12 to 24 months.
  • Capital will be invested in manufacturing expansion, strengthening the supply chain, and brand building.
  • Matter is renowned for its in-house powertrain, battery systems, and software architecture.

Ahmedabad-based Indian electric two-wheeler startup Matter has successfully raised ₹240 crore (approximately USD 25 million) in a recent funding round. With this fresh capital infusion, the company's total capital has reached ₹1000 crore. Matter aims to leverage this investment to significantly enhance its manufacturing capabilities and supply chain, alongside strengthening its market presence in India.

The company has announced that a substantial portion of this fund will be dedicated to preparing for the launch of four new electric bike models within the next 12 to 24 months. This expansion will be built upon Matter's existing Aera platform, utilizing the company's in-house developed powertrain, battery, and software architecture. This strategic move is expected to position Matter strongly amidst the increasing competition in the Indian electric vehicle (EV) market.

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Matter states that it has already spent approximately ₹750 crore on manufacturing, research and development (R&D), and market entry. The waiting list for the company's Aera bike continues to grow, indicating increasing market demand for its products. The new models will expand the Aera platform into additional variants and riding segments, offering more choices to consumers.

Matter is renowned for its indigenous technology, encompassing the development of its powertrain, battery systems, control electronics, and in-house software. The company not only designs these components but also manufactures its battery and powertrain systems. Currently, Matter holds 111 approved patents, underscoring its commitment to innovation. The Aera bike also features the company's unique 4-speed manual transmission, a rare feature in the electric bike segment.

The Matter Aera electric bike is equipped with a liquid-cooled battery pack and an on-board charging system, eliminating the need to carry a separate charger. The company claims that the Aera offers an impressive range of 172 kilometers on a single charge. It also boasts a 7-inch touchscreen display with connected features such as navigation, music, and call integration, providing a premium experience for modern riders.

Historical Background

The Indian electric two-wheeler market has witnessed rapid growth over the past few years, predominantly driven by electric scooters. However, the electric motorcycle segment is gradually carving out its niche, with several indigenous startups leading the innovation charge. The rise of companies like Matter aligns with India's 'Atmanirbhar Bharat' (Self-Reliant India) vision, emphasizing locally developed and manufactured EV solutions.

Why This Matters

BozokMedia analysis shows that the strengthening of local players in the Indian EV market is crucial not only for job creation but also for positioning the country as a significant player in the global EV supply chain. Matter's investment and product expansion will offer Indian consumers more choices and accelerate the adoption of electric mobility, thereby reducing reliance on fossil fuels and yielding significant environmental benefits.

"Matter's successful fundraising of such a substantial amount reflects growing investor confidence in the Indian EV startup ecosystem, particularly in the electric motorcycle segment where there is immense potential for innovation."
Did You Know?: Sales of electric two-wheelers in India surpassed 6 lakh units in 2022, marking an almost threefold increase compared to the previous year, and the market continues to grow rapidly.

Frequently Asked Questions

How much funding has Matter raised?

Matter has recently raised ₹240 crore (approximately USD 25 million) in funding.

How many new electric bikes does Matter plan to launch?

The company is preparing to launch four new electric bikes within the next 12 to 24 months.