Ahmedabad-based electric motorcycle maker MATTER Motor Works has secured $25 million, or about Rs 240 crore, in growth capital as it prepares to expand manufacturing, strengthen distribution and bring four new motorcycles to market over the next 12 to 24 months.
The latest round comes from existing investors and includes Helena, Capital 2B, Japan Airlines and TransLink’s corporate venture fund, along with the Shakopee Mdewakanton Sioux Community, a federally recognised Dakota tribal government in Minnesota with a diversified enterprise base.
For MATTER, the fresh capital adds to a sizeable investment already made in building the business behind its electric motorcycles.
The company’s total capital raised now stands at about Rs 1,000 crore, according to information released alongside the funding announcement. More than Rs 750 crore of that amount has already been deployed across manufacturing, research and development, and market entry.
That spending provides important context to the new round. MATTER is no longer raising capital only to develop an electric motorcycle platform. Its next phase is centred on increasing production capacity, widening its supplier base and building a larger customer-facing presence.
Four motorcycles planned over the next two years
MATTER intends to use the latest funding to expand manufacturing and its supplier network while increasing investment in distribution and brand building.
A major part of the plan is its product pipeline. The company expects to introduce four new motorcycles over the next 12 to 24 months, giving it a broader portfolio as it looks to scale beyond its current offering.
Founded in 2019, MATTER has developed much of its electric vehicle technology internally. Its in-house work covers the battery, powertrain, electronics and software, allowing the company to retain control over several of the core systems that go into its motorcycles.
Its current AERA platform is built around an approach that differs from the largely single-speed configuration used across electric two-wheelers.
MATTER positions the AERA as India’s first geared electric motorcycle. It uses a four-speed manual transmission called HyperShift and combines it with a liquid-cooled battery pack and motor.
The motorcycle also features an onboard charging system designed to work with a standard 5-amp household socket, a claimed certified range of 172 km and a connected 7-inch touchscreen.
Existing investors return as MATTER shifts focus to scale
Founder and Group CEO Mohal Lalbhai said the latest investment represents continued support from investors who had backed the company before its motorcycle reached customers.
“They have re-invested now that demand has proven the thesis,” Lalbhai said, adding that the capital would help accelerate growth as well as MATTER’s product roadmap.
The participation of existing investors gives this funding round a different character from an early-stage capital raise. MATTER now has to translate its technology, manufacturing investments and product roadmap into a wider market presence.
Its spending priorities reflect that shift. Manufacturing remains central, but the company is also directing capital towards suppliers, distribution and brand building, areas that become increasingly important once an automotive business moves from product development towards larger-scale sales.
Electric two-wheeler demand is expanding
MATTER’s fundraising comes during a period of strong activity in India’s electric two-wheeler market.
Retail electric two-wheeler sales reached 2,04,266 units in July 2026, crossing the 200,000-unit mark in a single month for the first time. Sales in the first seven months of the year were up 56% year on year, based on Vahan data reported by Autocar India.
Capital has also continued to move into the wider electric mobility sector.
River raised $120 million in August for manufacturing expansion and additional models, while Yulu raised $93 million to expand its electric fleet used for delivery and logistics. Ather raised Rs 1,300 crore through a qualified institutional placement in July, with the proceeds intended for manufacturing expansion and new products.
The policy environment remains another factor shaping the sector. The central government’s PM E-DRIVE scheme has an outlay of Rs 10,900 crore and supports electric vehicles, charging infrastructure and manufacturing. The scheme has been extended to March 2028, with a subsequent notification extending support and increasing the allocation for electric two-wheelers.
What the funding means for MATTER
The $25 million round gives MATTER additional capital at a point when its priorities are becoming broader.
The company has already put more than three-fourths of its roughly Rs 1,000 crore in raised capital into manufacturing, R&D and entering markets. Its next challenge is to use the new funding to extend that foundation into a larger manufacturing footprint, stronger distribution and a four-model product expansion.
For MATTER, the coming 12 to 24 months will therefore be defined as much by execution as by engineering. The technology behind AERA has established the company’s current product identity. The new capital is intended to help build the scale around it.
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