EV startup MATTER raises $25M to scale electric motorcycle business
Ahmedabad-based MATTER will use the funding to scale manufacturing, expand distribution and launch four new motorcycles as India’s electric two-wheeler market grows rapidly.
MATTER Motor Works, the electric motorcycle startup behind the AERA platform, has raised $25 million (~Rs 240 crore), in growth capital from existing investors.
The round includes Helena, a global problem-solving organisation with a venture arm, deep-tech investor Capital 2B, Japan Airlines and TransLink’s corporate venture fund, and the Shakopee Mdewakanton Sioux Community, a federally recognised Dakota tribal government in Minnesota with a diversified enterprise base.
The investment takes MATTER’s total capital raised to about Rs 1,000 crore. The startup said more than Rs 750 crore of the capital it has raised has already gone into manufacturing, research and development, and entering markets.
The Ahmedabad-based company plans to use the latest funding to expand manufacturing and its supplier network, increase spending on distribution and brand building, and introduce four new motorcycles over the next 12 to 24 months.
MATTER was founded in 2019 and has built much of its electric vehicle technology in-house, including the battery, powertrain, electronics and software.
Its AERA is positioned as India’s first geared electric motorcycle, using a four-speed manual transmission, called HyperShift, instead of the single-speed setup common in electric two-wheelers. It also uses a liquid-cooled battery pack and motor, an onboard charging system that can work from a standard 5-amp household socket, a claimed certified range of 172 km, and a connected 7-inch touchscreen.
Founder and Group CEO Mohal Lalbhai said the latest investment reflects support from investors who backed MATTER before its motorcycle reached customers. “They have re-invested now that demand has proven the thesis,” he noted, adding that the capital would accelerate both growth and the product roadmap.
India’s electric two-wheeler market has expanded rapidly this year, with retail sales reaching a record 2,04,266 units in July, the first month above the 200,000 mark. Sales during the first seven months were up 56% year on year, according to Vahan data reported by Autocar India. TVS alone sold 55,477 electric two-wheelers in July, while Ather has also been scaling aggressively.
Capital is following that growth. River raised $120 million in August to expand manufacturing and add models, while Yulu raised $93 million to expand its electric fleet for delivery and logistics work. Ather raised Rs 1,300 crore through a qualified institutional placement in July, following its public listing, with the proceeds intended for manufacturing expansion and new products. Investors are increasingly funding companies that have moved beyond prototypes and are attempting to demonstrate repeatable production, distribution and demand.
Meanwhile, policy is also continuing to shape the market. The central government’s PM E-DRIVE scheme has a total outlay of Rs 10,900 crore and supports electric vehicles, charging infrastructure and manufacturing. The government extended the scheme to March 2028, and a notification in August further extended and increased the allocation for electric two-wheelers.