Electric motorcycle manufacturer Matter has raised $35 million (approximately INR 290 crore) in its ongoing Series B funding round, led by US-based Helena. The round also saw participation from Japan Airlines & Translink Innovation Fund, Info Edge’s Capital 2B, Saad Bahwan Investment Management Company (SB Invest), along with other institutional investors and family offices.
The fresh funds will be utilised to accelerate Matter’s manufacturing plans, strengthen its supply chain, and expand marketing efforts and retail store setups.
Last week, a famous news media reported that Matter raised $10 million (INR 82.6 crore) as part of this Series B round. Founder and CEO Mohal Lalbhai told the news media that the startup aims to raise $65-$70 million in the Series B round, with the $35 million being the first tranche.
Founded in 2019 by Lalbhai, Arun Pratap Singh, Kumar Prasad Telikepalli, and Saran Babu, Matter has developed a proprietary technology stack, including energy storage systems and a drive train. The startup has also developed the electric motorbike AERA.
On attracting international investors, Lalbhai said, ‘There is still a significant white space in the motorcycle market within the EV space, which has driven investments into the company.’
Despite plans to launch AERA in 2022, delays have pushed the startup to aim for vehicle deliveries by Diwali this year. Lalbhai emphasised the importance of a robust supply chain before AERA entered the Indian electric two-wheeler market, dominated by e-scooters.
‘The lopsided nature of India’s electric two-wheeler market is that there are almost zero motorcycles and 100% e-scooters,’ Lalbhai explained. ‘We wanted to ensure that once we start supplies, they stay consistent and we can keep scaling up.’
Matter’s first flagship store will open in Ahmedabad in August, followed by expansions to Mumbai, Pune, Bengaluru, Hyderabad, Chennai, Delhi, and Assam. The company aims to start selling 5,000-6,000 units of its electric motorcycles per month by March next year, with a target of 10,000 units per month by the end of 2025.
Commenting on the funding, Helena managing partner Suprotik Basu said, ‘We believe it is inevitable that transportation in this market will electrify, and India is the most exciting place for that transition. The Matter team has impressed us with their value-driven, high-performance technology products.’
Currently, Matter generates revenue from stationary applications of lithium-ion batteries. However, Lalbhai expects a significant portion of revenue to come from AERA sales within the next 12 months.
