Ahmedabad-based Electric Motorcycle Startup Matter Raises $10M

According to regulatory documents with the Ministry of Corporate Affairs, Ahmedabad-based electric motorcycle startup Matter (Matter Motor Works Pvt. Ltd.) raised INR 82.5 crore (~$10Mn) in a private placement offer. Investors like Temasek and InfoEdge-backed Capital 2B, Japan Airlines & TransLink Innovation Fund, Abhay P Shah via Miracle Carriers & Trading Co., and Helena Special Investments Fund I participated in this major investment round.

About Matter Motor Works Pvt. Ltd.

Arun Pratap Singh, Saran Babu, Mohal Lalbhai, and Kumar Prasad Telikepalli launched Matter in 2019 with the goal of producing high-end electric motorcycles. The Aera, the company’s first two-wheeled EV, was introduced in March 2023 and has an avant-garde active liquid-cooled battery. Matter has also been concentrating on creating lithium-ion batteries for solar energy and electrical grid applications.

Matter obtained $10 million in 2022 from a number of high-net-worth individuals (HNIs) in India and beyond, including Baring Private Equity Partners, Climate Angels Fund, and Capital 2B Fund 1.

Its direct rivals will be TVS-backed Ultraviolette, Bharat Forge-backed Tork Motors, Revolt e-bikes, and also Ola in coming future.

Future of Electric Motorcycles in India

The demand of electric motorcycles is growing due to rising fuel costs and environmental concerns. Consumers are looking for more sustainable and cost-effective transportation options. Government incentives such as subsidies, tax benefits, and reduced GST rates are one of the major factors for the adoption of electric vehicles (EVs). Initiatives like FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) are boosting the EV market which is a government backed scheme. Improvements in battery technology are leading to longer ranges and shorter charging times. If the manufacturers pay attention on enhanced motor efficiency and lightweight materials, then this arena of motorcycling has huge potential to capture the market.

Expansion of charging infrastructure is critical for the widespread adoption of electric motorcycles. Government and private sector investments are increasing the number of charging stations across the country which is again a plus for the EV vehicles. Lower running and maintenance costs make electric motorcycles economically attractive. Also, this sector has potential for job creation which again gives wings to such adoption.

Electric motorcycles produce zero tailpipe emissions, contributing to reduced air pollution. Adoption of EVs supports India’s goals to combat climate change and reduce dependence on fossil fuels.

Finally, the future of electric motorcycles in India looks promising with supportive government policies, technological progress, and a growing consumer base. As infrastructure improves and more models become available, the transition to electric two-wheelers is expected to accelerate.

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