Matter Motors Secures Rs 82 Crore in Funding from High-Profile Investors

Electric motorcycle manufacturer Matter Motors has successfully raised Rs 82 crore in a recent funding round, attracting investments from prominent global players, including Japan Airlines & TransLink Innovation Fund and Helena Special Investments Fund.

According to documents filed with the Registrar of Companies, the Ahmedabad-based firm issued 1.1 lakh compulsory convertible preference shares at an issue price of Rs 7,320 each. This funding round saw substantial contributions from various investors. Notably, Los Angeles-based private equity firm Helena Special Investments Fund injected approximately Rs 41 crore, while the Japan Airlines & TransLink Fund, the venture arm of Japan Airlines, contributed Rs 25 crore. Info Edge-backed Capital 2B Fund also reinforced its commitment to Matter Motors by doubling its previous investment with an additional Rs 10 crore.

Matter Motors, which raised $10 million in June 2022 from Capital 2B and Baring Private Equity Partners, continues to build on its strong financial foundation. The company, known for its innovative electric motorcycles, launched its first vehicle, the Aera, early last year. The Aera is available in two variants, priced at Rs 1.7 lakh and Rs 1.8 lakh, respectively, and is currently open for bookings.

The fresh influx of capital will support Matter Motors in expanding its operations and setting up a manufacturing facility, a plan initially reported by ET in November last year. The company had expressed its intention to raise $100-200 million over the next two years to fuel its growth ambitions.

In the competitive landscape of electric motorcycles, Matter Motors is up against formidable rivals such as TVS-backed Ultraviolette and Bharat Forge-backed Tork Motors. Additionally, electric scooter maker Ola Electric had showcased four variations of electric motorcycles in August last year, with further updates on launch dates expected soon. Ultraviolette, known for its F77 bike, is preparing to commence deliveries to European markets including Turkey, Spain, and Germany from the latter half of this year.

With this significant funding boost, Matter Motors is well-positioned to enhance its market presence and accelerate the adoption of electric motorcycles in India and beyond. The company's strategic partnerships and robust financial backing underscore its commitment to innovation and sustainable mobility solutions.