Electric Bike Manufacturer Matter Secures $10 Million in First Funding Round

Electric mobility startup Matter has secured its first round of equity funding, raising Rs 82.6 crore (approximately $10 million). This investment marks a significant milestone for the Ahmedabad-based company, which manufactures electric bicycles (e-bikes).

Investor Breakdown

According to regulatory filings accessed from the Registrar of Companies, Matter’s board issued 1,12,837 compulsory convertible preference shares (CCPS) at an issue price of Rs 7,320 each to raise the capital. Key investors in this round include Japan Airlines & Translink Fund (Rs 25 crore), Info Edge-backed Capital 2B Fund (Rs 10.8 crore), Helena Special Investments Fund (Rs 41.75 crore), and Abhay P Shah, representing Miracle Carriers (Rs 5 crore).

Valuation and Growth Plans

Industry estimates from TheKredible suggest that Matter’s post-allotment valuation stands at around Rs 1,690 crore ($204 million). These funds are expected to fuel the company’s expansion plans, including scaling operations, distribution networks, and factory setup. Earlier reports indicated that Matter was seeking $200 million to support these initiatives.

Early Stage Company with Premium Appeal

Matter launched its debut e-bike in early 2023 and began accepting pre-orders in May of the same year. As a relatively young company (established a year ago), Matter operated in the pre-revenue stage during the fiscal year ending March 2023. The company reported losses of Rs 25 crore for that period. Financial results for the 2023-24 fiscal year are not yet available.

Matter positions itself as a premium brand, reflected in its starting price point of Rs 1.7 lakh. This strategy differentiates Matter from competitors like Ola Electric and Ather, which target a broader consumer base with more affordable offerings.

Competitive Landscape in the E-Bike Segment

Within the e-bike market, Matter faces competition from several established players. These include Tork Motors (backed by Bharat Forge), Ultraviolette (supported by TVS), and Revolt (controlled by RattanIndia Enterprises). Tork Motors secured $6 million in funding from Maxis Capital in January 2024, while Ultraviolette is reportedly seeking a larger $100 million investment round. Additionally, Ola Electric, currently focusing on electric scooters, has announced plans to enter the e-bike segment by the 2025-26 fiscal year.