Matter Motor Secures $35 Million in Funding to Accelerate Electric Motorbike Production

Matter Motors Secures 35 Million in Series B Funding Led by Helena Infomance
Preeti Bali / 6:50 am / July 4, 2024

Matter Motor, a company specializing in electric vehicle technology and energy storage, has announced the first tranche of a $35 million Series B funding round. The investment, led by US venture capital firm Helena, will fuel innovation and expansion across various sectors.

Investment Fuels Growth Across the Company

The newly acquired funds will be used to bolster Matter’s electric motorbike development, while simultaneously scaling up manufacturing, supply chain management, marketing strategies, and retail presence. This multi-pronged approach underscores Matter’s commitment to growth across its entire operation.

Funding Round on Track for $70 Million Completion

This $35 million tranche represents the initial portion of an ongoing Series B funding round. TheKredible estimates the round will ultimately reach $70 million upon completion, placing Matter’s post-allotment valuation at an estimated Rs 1,690 crore ($204 million). It’s important to note that the final valuation may fluctuate depending on the round’s closing details.

AERA: A Technological Powerhouse

Matter debuted its first motorbike in early 2023 and began accepting pre-orders in May of the same year. The company takes pride in its in-house technology stack, which harnesses the power of data, software, and artificial intelligence. This innovative approach has led to the creation of the AERA, a 4-speed hyper-shift geared electric motorbike.

Impressive Range and Charging Capabilities

Matter boasts that the AERA empowers riders with exceptional range and convenient charging options. Each charge delivers a powerful 125 kilometers, and the 5-amp onboard charging system allows for convenient charging almost anywhere. As of today, Matter has garnered an impressive 40,000 pre-bookings for the AERA, with deliveries slated to begin during the upcoming festive season.

Future Plans: Expansion and New Facilities

Matter’s CEO recently revealed ambitious plans to raise an additional $100 million to $200 million over the next two years. These funds will be allocated towards establishing a new manufacturing facility with a production capacity of a staggering 1 million electric motorbikes annually.

Financial Snapshot and Market Landscape

During the fiscal year ending March 2023, Matter operated in the pre-revenue stage. The company reported losses of Rs 25 crore for the same period. Their annual results for FY24 have yet to be filed. In the premium electric motorbike segment, Matter faces competition from established players like Bharat Forge-backed Tork Motors, TVS-backed Ultraviolette, and RattanIndia Enterprises-controlled Revolt. Additionally, Ola Electric, currently a manufacturer of electric scooters, plans to enter the e-bike segment by early 2026, further intensifying the competitive landscape.

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