Ahmedabad-based electric motorcycle maker Matter Motor Works has raised $25 million, or roughly ₹240–250 crore, in a new growth funding round from existing investors as it prepares to scale manufacturing, expand distribution and launch additional electric motorcycle models. The latest capital infusion takes Matter’s total funding to about ₹1,000 crore, strengthening its financial position as it moves from pilot production toward larger-scale commercial operations.
The funding comes at an important stage for the company. Matter began manufacturing its electric motorcycle in October 2024 and has since increased production capacity substantially. It currently has installed capacity of nearly 1,000 motorcycles a month and plans to reach about 5,000 vehicles a month by the end of the current financial year. The company is also expanding its dealership network and developing four new motorcycles based on its AERA platform.
Matter Raises $25 Million From Existing Investors
Matter Motor Works raised the latest $25 million growth round from investors already present on its cap table. The participating investors include Helena, Capital 2B, Japan Airlines, TransLink Innovation Fund and the Shakopee Mdewakanton Sioux Community (SMSC).
The latest transaction follows Matter’s earlier fundraising activity, including a $35 million first tranche of its Series B round led by U.S.-based venture capital firm Helena in July 2024.
Matter Funding Snapshot
| Particular | Details |
|---|---|
| Latest funding | $25 million |
| Approximate rupee value | ₹240–250 crore |
| Type | Growth funding |
| Investors | Existing investors |
| Key investors | Helena, Capital 2B, Japan Airlines, TransLink Innovation Fund, SMSC |
| Total funding to date | About ₹1,000 crore |
| Headquarters | Ahmedabad, Gujarat |
| Previous major round | $35 million Series B tranche in July 2024 |
The latest round is notable because the funding is coming from existing investors rather than being led by a completely new group of backers. This provides Matter with additional capital while allowing current investors to continue supporting its expansion strategy.
Fresh Capital To Fund Manufacturing And Distribution
Matter plans to use the new funding to increase manufacturing and supply-chain capacity, expand its distribution footprint and accelerate the development and launch of new motorcycles.
The company’s immediate priority is moving beyond its earlier pilot-production phase. During that period, Matter produced approximately 1,500–1,600 motorcycles. Its installed production capacity has now increased to nearly 1,000 motorcycles per month.
The company has set a much more ambitious target for the end of the current financial year.
Matter Production Capacity
Pilot Phase
100–200 motorcycles/month
↓
Current Capacity
~1,000 motorcycles/month
↓
FY-End Target
~5,000 motorcycles/month
Target increase from current capacity: ~5X
Reaching the target would represent a significant change in Matter’s operating scale. However, moving from capacity expansion to sustained production and sales will require the company to manage supply chains, quality control, working capital and retail demand simultaneously.
Matter Plans Four New Electric Motorcycles
Product expansion is another major component of Matter’s growth strategy.
The company plans to introduce four new motorcycles based on its AERA platform. These models are expected to target the 150cc–200cc motorcycle segment, with anticipated prices ranging from ₹1.6 lakh to ₹2.2 lakh.
This positioning puts Matter closer to India’s mainstream premium motorcycle market rather than restricting it to the smaller electric scooter category.
Upcoming Matter Motorcycle Portfolio
| Product Parameter | Planned Details |
|---|---|
| Number of new models | 4 |
| Platform | AERA |
| Target segment | 150cc–200cc equivalent |
| Expected price range | ₹1.6 lakh–₹2.2 lakh |
| Strategy | Expand product portfolio |
| Target customers | Premium and performance-oriented motorcycle buyers |
Matter’s existing AERA motorcycle uses a geared electric drivetrain and is positioned around performance and technology. The company’s official product information highlights features including 4+N gears, three riding modes, liquid cooling, a 7-inch touchscreen and an onboard charger compatible with a standard three-pin socket.
Dealership Network To Expand Across India
Manufacturing expansion is being accompanied by a push to increase Matter’s physical retail presence.
The company currently has around 30 dealerships across 21 cities. It plans to increase this number to nearly 50 dealerships by the end of the year, with western and southern India identified as important expansion markets.
A larger retail network will be important because electric motorcycles remain a relatively young category in India. Customers often require test rides, financing support, service availability and guidance on charging and ownership before purchasing an electric motorcycle.
Matter Retail Expansion
Current
30 dealerships
21 cities
↓
Year-End Target
~50 dealerships
↓
Focus
Western + Southern India
The expansion also creates an opportunity for Matter to build brand visibility beyond its Ahmedabad base and establish a wider service ecosystem.
More Than ₹750 Crore Already Deployed
Matter has said that more than ₹750 crore of the capital raised so far has been deployed across manufacturing, research and development and market entry.
The company has shipped close to 1,500 motorcycles so far and is now describing its next phase as a period of capacity expansion.
This transition is important for an EV startup because large amounts of capital are typically required before manufacturing reaches sufficient scale. Spending on factories, tooling, battery technology, supply chains, research and development and retail infrastructure can precede meaningful revenue generation.
The latest funding therefore gives Matter additional financial resources to bridge the gap between product development and larger-scale commercialization.
Matter Faces A Crowded Electric Motorcycle Market
Matter is entering a segment that includes several electric motorcycle manufacturers and established automotive groups.
Its competitors include Bharat Forge-backed Tork Motors, TVS-backed Ultraviolette and Revolt, which is controlled by RattanIndia Enterprises.
The competitive landscape is different from India’s electric scooter market. While electric scooters have already achieved meaningful consumer adoption, electric motorcycles remain at an earlier stage.
According to industry estimates cited in recent reports, electric motorcycles account for only about 0.1% of India’s overall motorcycle market, highlighting both the challenge and potential opportunity for manufacturers attempting to establish the category.
Competitive Landscape
| Company | Electric Motorcycle Positioning |
|---|---|
| Matter Motor Works | AERA-based performance motorcycles |
| Tork Motors | Electric performance motorcycles |
| Ultraviolette | Premium/performance electric motorcycles |
| Revolt | Electric commuter and performance motorcycles |
Matter’s strategy is therefore not simply to compete for existing EV customers. It is also attempting to persuade traditional motorcycle buyers to consider electric powertrains.
Why The ₹1.6 Lakh–₹2.2 Lakh Price Range Matters
Matter’s planned models are expected to be priced between ₹1.6 lakh and ₹2.2 lakh. That places them in a premium segment where customers can compare electric motorcycles directly with established petrol-powered motorcycles.
The challenge will be demonstrating that an electric motorcycle offers enough value through performance, running costs, technology and ownership experience to justify its price.
Features such as liquid cooling, multiple gears and connected technology can help differentiate Matter’s motorcycles, but consumer adoption will ultimately depend on reliability, charging convenience, range, after-sales support and total ownership costs.
Scaling Production Is The Next Major Test
Matter’s biggest challenge now is execution.
Increasing capacity from approximately 1,000 motorcycles a month to 5,000 would require a substantial increase in production throughput. The company will also need to ensure that its supplier network can support higher volumes while maintaining consistent component quality.
At the same time, production must be matched with demand. A manufacturing ramp without sufficient retail sales could increase inventory and working-capital requirements.
The company’s planned dealership expansion is therefore closely connected to its production strategy. More retail locations can help create demand, provide customer access and support service operations as production increases.
Electric Motorcycle Market Offers Long-Term Potential
India’s two-wheeler market remains one of the world’s largest, creating a significant long-term opportunity for electric motorcycles. However, the transition from petrol motorcycles to electric alternatives is expected to take time.
Electric scooters have generally been easier to electrify because of their urban use cases, while motorcycle customers often expect longer range, higher performance and greater flexibility for highway and intercity riding.
Matter is attempting to address some of these expectations through a geared electric platform and performance-oriented positioning.
The company describes its AERA motorcycle as India’s first geared electric motorcycle, while its technology platform emphasizes liquid cooling, connected features and multiple riding modes.
Key Numbers To Watch
Matter Growth Dashboard
$25 Mn Latest growth funding
~₹1,000 Cr Total funding raised
~₹750 Cr+ Capital deployed
~1,500 Motorcycles shipped
~1,000/month Current capacity
5,000/month FY-end production target
30 Current dealerships
~50 Year-end dealership target
4 New motorcycles planned
₹1.6–2.2 Lakh Expected price range
These figures illustrate the scale of the next phase. Matter is moving from developing and validating its technology toward building a larger manufacturing and distribution business.
The Bigger Picture
Matter’s $25 million growth round reflects the increasing capital requirements of India’s emerging electric motorcycle industry. The company now has roughly ₹1,000 crore in total funding and is using the latest capital to expand manufacturing, strengthen distribution and develop a broader product portfolio.
The next stage will be less about fundraising and more about execution. Matter needs to convert its manufacturing capacity into actual deliveries, expand its dealership footprint, launch new models and establish a sustainable position in a market where electric motorcycles still represent a small share of total two-wheeler demand.
Looking Ahead
Matter’s planned increase in production capacity to 5,000 motorcycles per month will be one of the most important milestones to watch during the current financial year. The company’s ability to achieve that target while maintaining product quality and controlling costs will determine how effectively it can convert fresh capital into commercial scale.
The launch of four additional AERA-based motorcycles could also broaden Matter’s appeal and give it access to a wider range of premium motorcycle buyers. With additional dealerships planned across western and southern India, the company is entering a critical phase in which manufacturing scale, product acceptance and retail execution will determine its position in India’s developing electric motorcycle market.
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