Matter Raises $25M Growth Round to Scale Its Electric Motorcycle Business

Ahmedabad-based electric motorcycle maker Matter has raised $25 million in a growth equity round from existing investors Helena, Capital 2B, Japan Airlines, TransLink Innovation Fund and the Shakopee Mdewakanton Sioux Community (SMSC).

The latest round takes Matter’s total capital raised to more than $105 million.

Matter had previously raised $35 million in the first tranche of its Series B round in July 2024, led by US-based venture capital firm Helena.

Founded by Mohal Lalbhai, Matter is building electric motorcycles around its AERA platform. Lalbhai is the company’s Founder and Group CEO.

The fresh capital will primarily be used to expand Matter’s distribution network, increase manufacturing capacity and develop new products.

Matter began manufacturing in October 2024 and has produced around 1,500 to 1,600 vehicles so far. Its current production capacity is close to 1,000 vehicles per month, up from 100 to 200 units during its pilot phase.

The company plans to increase monthly production to 5,000 vehicles by the end of the financial year.

Matter also plans to expand its retail network from 30 dealerships across 21 cities to around 50 by the end of the year, with a focus on western and southern India. It expects to add around 100 more touchpoints next year.

The company is developing four motorcycles based on the AERA platform, targeting the 150cc to 200cc segment with expected prices between Rs 1.6 lakh and Rs 2.2 lakh.

Matter competes in the premium electric motorcycle segment with players including Tork Motors, Ultraviolette and Revolt.

The funding comes as Matter moves from pilot-stage production toward a larger manufacturing and distribution footprint, making execution and production scale the key next steps for the company.