• Matter launched its first electric motorbike and began accepting pre-orders in May 2023.

  • This round was led by US-based venture capital firm Helena.

  • The influx of capital will be pivotal in accelerating Matter’s innovative projects in electric motorbikes.

In a significant boost to its growth trajectory, Matter Motor, a company specializing in electric vehicle (EV) technology and energy storage, has successfully secured a first tranche of $35 million in its Series B funding round. This round was led by the US-based venture capital firm Helena. Other notable participants in this round include Capital 2B, Japan Airlines, Translink Innovation Fund, Saad Bahwan Investment Management Company (SB Invest), as well as other institutional investors and family offices.

The influx of capital will be pivotal in accelerating Matter’s innovative projects in electric motorbikes. According to the company’s press release, the funds will be allocated to scaling manufacturing, enhancing the supply chain, and bolstering marketing and retail efforts. This strategic investment aims to position Matter as a formidable player in the EV industry.

Matter Motor has been actively securing investments to fuel its ambitious growth plans. Recently, the company raised an additional $10 million as part of the ongoing Series B round, which is expected to close at approximately $70 million. However, this valuation is subject to change upon the completion of the funding round.

The company’s journey in the electric motorbike market has been marked by significant milestones. In early 2023, Matter launched its first electric motorbike and began accepting pre-orders in May 2023. The flagship product, the AERA, showcases Matter’s in-house technology stack integrating data, software, and machine intelligence. The AERA is a 4-speed hyper-shift geared electric motorbike designed to offer a seamless riding experience.

A standout feature of the AERA is its impressive range and charging capabilities. The motorbike provides over 125 kilometres per charge and is equipped with a 5-amp onboard charging system, enabling riders to charge their bikes anywhere conveniently. This innovative approach has resonated well with consumers, as evidenced by the 40,000 pre-bookings Matter has secured for the AERA. Deliveries of the pre-ordered bikes are slated to begin during the upcoming festive season.

Looking ahead, Matter Motor has ambitious plans to expand its production capacity further. The company’s CEO recently revealed intentions to raise between $100 million and $200 million over the next two years. These funds will be directed towards establishing a new manufacturing facility with the capability to produce 1 million electric motorbikes annually. This expansion is crucial for meeting the growing demand and scaling operations to new heights.

Despite the promising developments, Matter Motor remains in the pre-revenue stage. For the fiscal year ending in March 2023, the company reported losses amounting to Rs 25 crore. The annual results for FY24 are yet to be filed, which will provide a clearer picture of the company’s financial health.

In the competitive premium e-bike segment, Matter Motor faces formidable rivals. Key competitors include Tork Motors, backed by Bharat Forge, Ultraviolette, supported by TVS, and Revolt, controlled by RattanIndia Enterprises. Additionally, Ola Electric, known for its electric scooters, has announced plans to enter the e-bike market by early 2026, further intensifying the competition.

In summary, Matter Motor’s recent funding success marks a significant step forward in its mission to revolutionize the electric motorbike industry. The company’s innovative technology, coupled with strategic investments, positions it well to capitalize on the growing demand for electric vehicles. As Matter continues to expand its production capabilities and enhance its product offerings, it is poised to become a major player in the EV market, driving the transition towards sustainable transportation solutions.