Ahmedabad-based EV startup MATTER has raised $25 million in growth capital to scale its electric motorcycle business. The round was backed by existing investors, including Helena, Capital 2B, Japan Airlines, TransLink Innovation Fund and the Shakopee Mdewakanton Sioux Community.

This funding comes at an important time for India’s electric two-wheeler market. Electric scooters have already become common in many cities, but electric motorcycles are still at an early stage. MATTER wants to change that by building electric bikes that can compete directly with petrol motorcycles in the 150cc to 200cc segment.

MATTER was founded in 2019 by Mohal Lalbhai, Arun Pratap Singh, Kumar Prasad Telikepalli and Saran Babu. Mohal Lalbhai is the Founder and Group CEO of the company.

What MATTER does

MATTER builds electric motorcycles with its own core technology. The company designs important parts such as the battery system, powertrain, control electronics and software in-house.

Its main product platform is called AERA. The MATTER AERA is positioned as India’s first geared electric motorcycle. Unlike many electric two-wheelers that use a single-speed setup, AERA comes with a four-speed manual gearbox called HyperShift.

For a rider used to petrol bikes, this can make the electric motorcycle feel more familiar. Gear shifts, strong pull, and a bike-like riding experience are important for people who do not want an electric scooter but still want to move away from petrol.

Purpose of the $25 million funding

MATTER will use the fresh funding for three main goals – expanding manufacturing, strengthening its supply chain and growing its distribution network.

The company also plans to launch four new motorcycles over the next 12 to 24 months. These bikes are expected to be based on the AERA platform and aimed at the 150cc to 200cc motorcycle segment.

In simple words, MATTER is moving from product-building mode to scale-up mode. It has already invested heavily in research, manufacturing and market entry. Now it needs to produce more bikes, reach more customers and support dealers in more cities.

Business Standard reported that MATTER’s total capital raised has reached around Rs. 1,000 crore, with more than Rs. 750 crore already used across manufacturing, R&D and market entry.

Why electric motorcycles matter

India is one of the world’s largest two-wheeler markets. But most electrification so far has happened in scooters. Motorcycles remain a tougher category because buyers expect performance, range, durability and a familiar riding feel.

A daily commuter may ask simple questions before buying an electric bike. Will it go far enough on one charge? Can it handle city traffic and highway stretches? Is service available nearby? Will battery life remain reliable after a few years?

MATTER is trying to answer these questions with a product that feels closer to a normal motorcycle. Its AERA 5000+ comes with a 5 kWh battery, a certified range of 172 km and an onboard charger that can work with a standard 5-amp home socket, according to earlier reports.

Competitors in the market

MATTER competes in the premium electric motorcycle space with companies such as Revolt Motors, Tork Motors, Ultraviolette and Oben Electric.

It also competes indirectly with petrol bikes like Bajaj Pulsar, TVS Apache, Yamaha R15 and KTM 200 Duke, because MATTER is targeting riders who may otherwise buy a 150cc to 200cc petrol motorcycle.

This makes its challenge bigger. The company must prove that an electric motorcycle can be exciting, practical and reliable at the same time.

What MATTER needs to get right

The next stage will be about execution.

Manufacturing electric motorcycles at scale is not easy. MATTER will need consistent quality, strong battery safety, trained service teams, dealer support and clear pricing.

The company also needs to build trust among petrol bike riders. Many young riders care about performance and style, but they also want low running cost. If MATTER can show that its bikes are fun to ride and cheaper to run, it can attract serious interest.

Conclusion with key takeaways

MATTER’s $25 million funding round shows that investors still see strong potential in India’s electric motorcycle market. The company is not trying to build just another EV. It wants to bring electric mobility into the motorcycle segment, where petrol bikes still dominate.

The funding will help MATTER expand production, improve supply chain strength, grow its retail network and launch four new motorcycles.

Key takeaways –

• MATTER has raised $25 million in growth capital.
• Existing investors including Helena, Capital 2B, Japan Airlines, TransLink Innovation Fund and SMSC participated.
• The startup was founded in 2019 by Mohal Lalbhai, Arun Pratap Singh, Kumar Prasad Telikepalli and Saran Babu.
• MATTER builds geared electric motorcycles under the AERA platform.
• The funding will support manufacturing, distribution, supply chain and four new motorcycle launches.