Matter Motors Raises $35 Mn Fresh Funding

Electric motorcycle manufacturer Matter Motors has secured ₹35 Mn in a fresh round of funding. The investment comes from a group of prominent players, including Japan Airlines & TransLink Innovation Fund, Helena Special Investments Fund, and Capital 2B Fund.

This funding round will fuel Matter Motors' growth as the company aims to expand its operations and establish a new manufacturing facility. Notably, Matter Motors had previously raised $10 million in June 2022.

Matter Motors' Funding Round Investors

The investors of Matter Motors' latest funding round show the growing confidence in the electric vehicle (EV) startup. Japan Airlines & TransLink Innovation Fund, the venture arm of Japan Airlines, invested ₹25 crore. The participation of Japan Airlines, a major airline company, in this round is intriguing. It could signal Matter Motors' potential for innovation in electric mobility solutions that extend beyond two-wheeled vehicles. Perhaps the company is exploring partnerships or ventures into the electric aviation sector, a field with significant research and development underway. 

Helena Special Investments Fund is a Los Angeles-based private equity firm's hefty contribution of ₹41 crore. This signifies a strong belief in Matter Motors' long-term potential. This investment could provide Matter Motors with valuable financial guidance. Capital 2B Fund is the third investor and is a venture capital fund, backed by Info Edge. It doubled down on its previous investment, injecting an additional ₹10 crore.This continued investment suggests that Capital 2B Fund is impressed by Matter Motors' progress and is confident in the company's ability to deliver strong returns.

The company previously raised $10 million in June 2022 from Capital 2B and Baring Private Equity Partners, among others. Other notable investors in this round include Saad Bahwan Investment Management Company (SB Invest). This latest round strengthens its financial runway. It was aiming to raise $100-200 million over the next two years to fuel expansion and factory setup.

Matter Motors Recent Activities

Matter Motors entered the electric vehicle space with the launch of its Aera motorcycle earlier in 2023. The Aera is available in two variants, priced competitively at ₹1.7 lakh and ₹1.8 lakh. This funding round will likely strengthen Matter Motors' position in the electric motorcycle segment. 

Where Will the Funds Go?

Matter Motors has earmarked a fresh infusion of capital for strategic expansion. The company plans to use the funds to scale up operations. A significant portion of the funding will be directed towards expanding Matter Motors' current operations. This may involve hiring additional talent, increasing production capacity, and streamlining manufacturing processes. It will also establish a new manufacturing facility. The company has expressed its intent to build a dedicated manufacturing facility to cater to the growing demand for its electric motorcycles. This facility will likely be equipped with advanced technology and infrastructure to ensure efficient production. 

Some of this fund will be used for product development and innovation. Matter Motors might allocate some funds towards research and development to refine its existing electric motorcycle offerings and potentially explore new product lines within the electric mobility domain. With this clear roadmap for using the funds, Matter Motors is well-positioned to capitalise on the rapidly growing electric vehicle market in India.

Matter Aera 5000 is powered by a 10.5 kW motor and claimed top speed is 105 kmph. It features a 5 kWh battery pack that enables it to deliver a claimed range of 125 km. Charging is via a 5 amp socket charger and charging time is 6 hrs, it can be dropped to just 2 hrs via a fast charger. The unique feature is that it has a 4-speed gearbox that has been reengineered to provide better gear shifts and control with regen. You can read the full review here or click below to watch it.