Ahmedabad-based electric motorcycle maker Matter has raised $25 million (around Rs 250 crore) in a growth equity round from existing investors Helena, Capital 2B, Japan Airlines, TransLink Innovation Fund, and the Shakopee Mdewakanton Sioux Community (SMSC).
In July 2024, Matter raised the first tranche of $35 million in its Series B round led by US-based venture capital firm Helena.
The latest round takes Matter’s total capital raised to more than Rs 1,000 crore ($105 million). The company makes the AERA electric motorcycle.
Matter will use the fresh capital mainly to expand its distribution network, increase manufacturing capacity, and develop new products. The company started manufacturing in October 2024 and has produced around 1,500 to 1,600 vehicles so far.
Matter currently has a production capacity of nearly 1,000 vehicles per month, up from 100 to 200 units during its pilot phase. It plans to increase monthly production to 5,000 vehicles by the end of the financial year.
The company also plans to expand its retail network from 30 dealerships across 21 cities to around 50 by the end of the year. It will focus on western and southern India and plans to add around 100 more touchpoints next year.
Matter is also developing four motorcycles based on the AERA platform. The new models will target the 150cc to 200cc segment and will be priced between Rs 1.6 lakh and Rs 2.2 lakh.
In the premium electric motorcycle segment, Matter competes with Bharat Forge-backed Tork Motors, TVS-backed Ultraviolette, and RattanIndia Enterprises-controlled Revolt.