Matter Motors, an electric motorcycle startup based in Ahmedabad, is aiming to raise US$200 million (approximately Rs 1,730 crore) in funding over the next few years. The company plans to use these funds to roll out new electric motorcycle models, ramp up production capacity, and boost marketing efforts. In addition, Matter Motors is considering a public listing within the next three to four years, according to a senior company official.
Founded in 2019 by Mohal Lalbhai, Arun Pratap Singh, Saran Babu, and Prasad Telikapalli, Matter’s product lineup currently revolves around its flagship electric motorcycle, the Aera. The Aera is India’s first electric bike with a 4-speed manual gearbox, priced at Rs 1.8 lakh, and is sold in cities like Ahmedabad and Bengaluru.
“We expect to raise about $200 million in multiple funding rounds over the next few years. This capital-intensive industry requires constant investment to scale, expand our product range, and ramp up brand marketing,” said Mohal Lalbhai, one of the co-founders.
So far, Matter has successfully raised around US$75 million through Series B funding, bringing its current valuation to US$230 million (approximately Rs 1,990 crore). Key investors in the startup include Helena, Capital 2B, Japan Airlines, Translink Innovation Fund, LetsVenture, Baring Private Equity Partners, and SaadBahwan Investment Management Company (SB Invest).
This year, retail expansion is a top priority for the company. Matter plans to significantly increase its retail presence, expanding its touchpoints from just two to 45 locations, with a focus on key cities such as Delhi, Jaipur, Pune, Mumbai, Bangalore, Coimbatore, Hyderabad, and Chennai. “We are putting all our efforts into expanding our retail network this year, aiming for 45 touchpoints by the end of 2025,” Mr Lalbhai noted.
While Matter Motors will focus on driving domestic sales of its Aera model in the short term, the company plans to explore export markets starting in 2026. Targeted regions include Southeast Asia, Eastern and Southern Europe, East Africa, and Latin America.
Matter has no immediate plans to enter the electric scooter or premium motorcycle markets. The company is concentrating its efforts on the 200cc-equivalent motorcycle segment, where it sees considerable market potential. Lalbhai also confirmed that the company plans to launch three new models over the next three years, each targeting different segments.
While India’s electric two-wheeler market is growing, the electric motorcycle segment has yet to gain significant traction. Challenges like longer driving ranges and the complexities of integrating larger battery packs are hurdles for the industry. Apart from Matter, key players such as Ola Electric, Revolt Motors, and Ultraviolette are also competing in this space. Additionally, Ather Energy is preparing to launch its electric motorcycles targeting the 125-300cc segment with its new Zenith platform.
In the traditional segment, Royal Enfield plans to launch electric motorcycles under the Flying Flea brand, while Hero MotorCorp has a partnership with US-based Zero Motorcycles to develop electric bikes. TVS Motor’s Norton Motorcycles is also expected to enter the electric motorcycle market next year.
Matter currently manufactures its electric motorcycles at a pilot facility in Ahmedabad. While the production capacity at this facility is low, it is being gradually increased to a target of 1.2 lakh units per year. The company expects to produce around 5,000 motorcycles per month by mid-2026 and is already considering plans for a new, larger facility.
“Once we reach monthly production of 20,000 to 30,000 units, we expect to break even in terms of EBITDA,” Mr Lalbhai added. Looking towards the future, Matter Motors is setting its sights on a potential public offering. The company plans to list its shares in the next three to four years, with a goal of achieving profitability before making the leap to the public markets. “We are on a clear path to profitability, and achieving this milestone is one of our key internal benchmarks for an IPO,” concluded Mr Lalbhai.
Matter Motors is an innovative Indian electric vehicle (EV) manufacturer focused on creating high-performance, sustainable two-wheelers. With a vision to revolutionize the mobility landscape, Matter Motors combines cutting-edge technology with a deep commitment to sustainability. The company’s flagship product, the Matter e-bike, integrates a high-efficiency lithium-ion battery with advanced features such as a connected dashboard, regenerative braking, and smart driving modes to enhance user experience.
Through its emphasis on innovation, the brand aims to accelerate the adoption of electric mobility, offering an eco-friendly alternative to traditional petrol-powered motorcycles. In addition to producing high-quality electric vehicles, Matter Motors is dedicated to building an integrated ecosystem that includes charging infrastructure and after-sales services, ensuring a seamless experience for riders. The company’s products reflect its belief in merging performance with environmental responsibility, making it a rising player in India’s rapidly evolving EV market.
