Ahmedabad-based electric motorcycle startup Matter has raised $25 million, or around ₹250 crore, in a growth equity round from existing investors Helena, Capital 2B, Japan Airlines, TransLink Innovation Fund and the Shakopee Mdewakanton Sioux Community. The fresh funding takes the company’s total capital raised to more than ₹1,000 crore, or roughly $105 million.
Matter plans to deploy the capital primarily towards expanding its distribution network, increasing manufacturing capacity and developing new products. The company began manufacturing in October 2024 and has produced around 1,500–1,600 electric motorcycles so far. Its current facility can manufacture nearly 1,000 vehicles a month, compared with just 100–200 units during the pilot stage.
The next expansion is significantly bigger. Matter aims to raise monthly production capacity to around 5,000 motorcycles by the end of the financial year. Its retail footprint is also set to grow from 30 dealerships across 21 cities to nearly 50 by year-end, with western and southern India forming the immediate focus. The company plans to add another 100 touchpoints next year.
Founded around its technology-led electric motorcycle platform, Matter currently sells the AERA and is developing four additional models based on the same platform. These motorcycles will target the popular 150cc–200cc segment, with expected prices ranging between ₹1.6 lakh and ₹2.2 lakh. The company competes in India’s premium electric motorcycle market with players such as Ultraviolette and Revolt.
For Matter, the new round comes at a point where the challenge is shifting from building the product to building scale around it. Increasing production fivefold, expanding dealerships and launching more motorcycles could help the company reach a much wider customer base. As India’s electric two-wheeler market matures, Matter’s ability to translate its technology into manufacturing volume and retail reach will be central to its next phase of growth.
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Startup Unplugged
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