MATTER Motor Works Raises 25 Million Dollars To Scale Electric Motorcycle Manufacturing And Launch Four New Models
The Ahmedabad company behind India’s first geared electric motorcycle has secured fresh growth capital to launch four new models and ramp production fivefold, betting it can convert petrol bike loyalists rather than compete with other EVs.
Highlights:
- MATTER raised 25 million dollars, around Rs 250 crore, from existing investors
- Total capital raised to date now stands at roughly Rs 1,000 crore
- Four new electric motorcycles are planned over the next 12 to 24 months
- Monthly production capacity is set to scale from around 200 to 5,000 units
- MATTER holds 111 granted patents out of 450 total patent filings
- Electric motorcycles hold just about 0.1 percent market share against 25 percent for scooters
Electric vehicles in India have followed a fairly predictable adoption pattern so far: scooters first, motorcycles a distant second. That gap reflects both genuine engineering challenges and the reality that motorcycle riders—unlike scooter buyers—expect gear shifting, higher performance, and a riding experience that most electric platforms have struggled to replicate.
MATTER Motor Works, the Ahmedabad-based company behind India’s first geared electric motorcycle, has just raised fresh capital specifically to push harder into that segment, closing a $25 million growth round from existing investors as it shifts from pilot-scale production toward commercial manufacturing.
The round, worth roughly Rs 250 crore, was anchored by existing backers including Helena, Capital 2B, Japan Airlines, TransLink Innovation Fund, and the Shakopee Mdewakanton Sioux Community. This infusion takes MATTER’s total capital raised to date to approximately Rs 1,000 crore, with more than Rs 750 crore already deployed across manufacturing, research and development, and initial market entry.
Mohal Lalbhai, founder and group chief executive officer of MATTER, framed the round around a specific strategic inflection point:
“The capital will accelerate two things simultaneously: the growth engine that existing customer demand has already earned, and the product roadmap that engine unlocks.”— Mohal Lalbhai, Founder & Group CEO of MATTER
That roadmap includes four new motorcycles built on the platform underpinning India’s first geared electric motorcycle, backed by an IP portfolio of 111 granted patents out of more than 450 total filings.
Understanding what MATTER has built requires looking at its vertical integration. The company designs its core technology entirely in-house—spanning the powertrain, battery systems, control electronics, and software—and manufactures key vehicle components itself. MATTER’s flagship product, the Aera, uses a four-speed manual transmission called HyperShift, a liquid-cooled battery pack, and an onboard charging system compatible with standard 5-amp household sockets.
The production numbers underlying this round reflect a clear scaling effort:
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Pilot Phase (Oct 2024 – Q1 FY): Produced roughly 1,500 to 1,600 vehicles, operating at a monthly output between 100 and 200 units.
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Current Installed Capacity: Unlocked capacity of nearly 1,000 vehicles per month.
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FY End Target: Scaling production to 5,000 vehicles per month by the end of the current financial year.
Distribution expansion is running in parallel. MATTER’s retail network stands at 30 dealerships spread across 21 cities. The company plans to grow that footprint to nearly 50 dealerships by the end of the year, focusing specifically on western and southern India, with plans to add roughly 100 more touchpoints next year. The four upcoming motorcycle models will target the 150cc to 200cc segment, with expected pricing in the Rs 1.6 lakh to Rs 2.2 lakh range.
The broader market context highlights the scale of this undertaking:
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Scooter Dominance: Electric scooters account for roughly 25 percent of the broader electric two-wheeler market.
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Motorcycle Lag: Electric motorcycles hold just approximately 0.1 percent market share against petrol-powered incumbents.
Real structural risks remain. The company remains exposed to global supply chains for critical components including battery cells, magnets, and semiconductor parts, which continue to be imported rather than manufactured domestically. Scaling manufacturing quality and reliability from a pilot phase of 150 vehicles a month to 5,000 vehicles a month within a single financial year also represents a major operational execution challenge.
Viewed evenly, MATTER’s fresh funding round reflects deepening confidence from existing investors in a startup building in-house technology within a tough segment of India’s EV transition. Whether that technological differentiation proves sufficient to convert petrol motorcycle loyalists at scale will be tested by actual retail sales data over the coming year.
