Electric Motorcycle Maker Matter Secures $25 Million Funding
Electric motorcycle maker Matter, based in Ahmedabad, has successfully raised $25 million (approximately Rs 250 crore) in a growth equity round. This round includes participation from existing investors such as Helena, Capital 2B, Japan Airlines, TransLink Innovation Fund, and the Shakopee Mdewakanton Sioux Community (SMSC). In July 2024, Matter had raised the initial tranche of $35 million in its Series B funding round, led by the US-based venture capital firm Helena. With this latest funding, Matter has raised total capital exceeding Rs 1,000 crore (around $105 million).
Investment Purpose
The newly acquired funds will primarily be utilized by Matter to enhance its distribution network, boost manufacturing capacity, and develop innovative products. Commencing production in October 2024, Matter has already manufactured approximately 1,500 to 1,600 vehicles to date.
Production Expansion Plans
Currently, Matter has a production capacity of close to 1,000 vehicles per month, a significant increase from the 100 to 200 units produced during its pilot phase. The company aims to elevate its monthly production to 5,000 vehicles by the conclusion of the financial year.
Retail Network Expansion
In addition to production, Matter intends to broaden its retail network from 30 dealerships across 21 cities to approximately 50 by the end of this year. The focus will primarily be on western and southern India, with plans to introduce around 100 additional touchpoints in the following year.
New Motorcycle Development
Furthermore, Matter is developing four new motorcycle models based on its AERA platform. These upcoming models will cater to the 150cc to 200cc segment, with pricing set between Rs 1.6 lakh and Rs 2.2 lakh.
Market Competition
In the premium electric motorcycle market, Matter faces competition from brands such as Tork Motors, which is backed by Bharat Forge, Ultraviolette, supported by TVS, and Revolt, which is controlled by RattanIndia Enterprises.