Matter has raised $25 million (approximately ₹250 crore) in a growth equity funding round from its existing investors. This investment round attracted leading investors such as Helena, Capital 2B, Japan Airlines, TransLink Innovation Fund, and the Shakopee Mdewakanton Sioux Community (SMSC).

The funds come following the July 2024 Series B round, during which the company closed on the initial $35 million round led by the US-based venture capital firm Helena. The latest investment brings total proceeds raised by Matter to over ₹1000 crore (approximately $105 million) and strengthens the company’s market standing in India’s fast-expanding e-two-wheeler segment.

Fund deployment and vision

Matter will use the fresh financing to accelerate application investments, fuel its manufacturing capability and flex in its overall distributive footprint, and to advance product development in select areas. Currently, the electric vehicle manufacturer operates with a production capacity of over 1000 vehicles per month. 

This is a significant leap from the initial pilot production of 100 to 200 units. The company is planning to augment its manufacturing capacity and operations to meet the monthly goal of 5,000 vehicles in the current financial year ending.

Matter’s mission is to create Electric Mobility without compromise, to bring India to Energize India and inspire the world with solutions. 

With a vision to become the most dynamic brand that steers India towards a sustainable future, Matter champions indigenous, end-to-end technology solutions, like the make’s liquid-cooled battery systems and manual transmissions that redefine the two-wheeler riding experience. 

Through the use of specially designed hardware and integrated software, Matter will directly promote carbon neutrality, reduce the energy bills of Indian households, and foster a self-reliant and clean mobility environment in India.

Retail strategy and product portfolio

On the retail side, Matter promises to significantly boost its direct sales footprint nationally. The company has planned to expand its operational dealership network from 30 outlets in 21 cities to almost 50 outlets by the end of the year. 

The network expansion policy will primarily be based on the western and southern parts of India. Matter has announced its long-term plan of building out to open approximately 100 more customer touchpoints next year to drive better customer engagement and accessibility for targeted geographies.

The company builds on its geographic expansion and manufacturing capacity by simultaneously deploying four new e-motorbikes based on its own AERA platform. The AERA electric motorcycle has already been a fundamental component of the company’s product portfolio. 

New models for this platform are expected to be designed for the 150cc to 200cc motorcycle segment. To serve the growing demand in the performance electric two-wheeler market, Matter will price these new vehicle models between ₹1.6 lakh and ₹2.2 lakh.

Conclusion

The growth capital infusion of $25 million is a major step forward for Matter to further scale operations in Indian electric mobility. The startup has received continuous support from top global investors, and has a definite roadmap with regard to product line expansion and manufacturing scalability.

Matter’s goals are to expand its vehicle output to 5,000 units per month, connect to a wide distribution network across western and southern India, introduce fresh products to its AERA production platform, and consolidate its market position in the competitive battery-powered two-wheeler arena.