E-bike Maker Matter Raises $35 Million in Series B Round

Historical Context: The electric vehicle (EV) industry has seen significant growth over the past decade, driven by increasing environmental concerns, advancements in battery technology, and supportive government policies. The shift towards sustainable transportation has led to a surge in investments in EV startups globally. In India, the government’s push for electric mobility, including incentives and subsidies, has further accelerated the adoption of electric vehicles.

News Article: Matter Motor, an EV technology and energy storage firm, has successfully raised $35 million in the first tranche of its ongoing Series B funding round. This round is led by the US-based venture capital firm Helena, with participation from other notable investors such as Capital 2B, Japan Airlines & Translink Innovation Fund, Saad Bahwan Investment Management Company (SB Invest), and various institutional investors and family offices.

The newly acquired capital will be utilized to enhance Matter’s innovations in electric motorbikes and to scale up its manufacturing, supply chain, marketing, and retail operations. This funding is part of a larger round expected to close at approximately $70 million. According to TheKredible’s estimates, Matter’s valuation stands at around Rs 1,690 crore ($204 million) post-allotment, with potential adjustments upon the round’s completion.

Matter introduced its first electric motorbike, AERA, in early 2023 and began accepting pre-orders in May 2023. The company has developed a proprietary technology stack that integrates data, software, and machine intelligence to create a 4-speed hyper-shift geared electric motorbike. The AERA model offers a range of over 125 kilometers per charge with a 5-amp onboard charging system, allowing riders to charge anywhere. To date, Matter has secured 40,000 pre-bookings for the AERA, with deliveries scheduled to begin this festive season.

Looking ahead, Matter’s CEO announced plans to raise between $100 million and $200 million over the next two years to establish a new manufacturing facility with a total installed capacity to produce 1 million e-motorbikes annually.

During the fiscal year ending March 2023, Matter was in the pre-revenue stage, reporting losses of Rs 25 crore. The company has yet to file its annual results for FY24.

In the premium e-bike segment, Matter faces competition from Bharat Forge-backed Tork Motors, TVS-backed Ultraviolette, and RattanIndia Enterprises-controlled Revolt. Additionally, Ola Electric, known for its electric scooters, plans to enter the e-bike market by early 2026.

Summary in Bullet Points:

• Matter Motor raises $35 million in the first tranche of its Series B funding round.
• The round is led by US-based venture capital firm Helena, with participation from Capital 2B, Japan Airlines & Translink Innovation Fund, SB Invest, and other investors.
• Funds will be used to enhance innovations in electric motorbikes and scale manufacturing, supply chain, marketing, and retail operations.
• The total Series B round is expected to close at around $70 million, with Matter’s valuation estimated at Rs 1,690 crore ($204 million).
• Matter launched its first electric motorbike, AERA, in early 2023, with pre-orders starting in May 2023.
• AERA offers a range of over 125 kilometers per charge with a 5-amp onboard charging system.
• Matter has secured 40,000 pre-bookings for AERA, with deliveries set to begin this festive season.
• The company plans to raise $100 million to $200 million in the next two years to build a new manufacturing facility with a capacity of 1 million e-motorbikes annually.
• Matter reported losses of Rs 25 crore for the fiscal year ending March 2023 and is yet to file its FY24 results.
• Competitors in the premium e-bike segment include Tork Motors, Ultraviolette, Revolt, and Ola Electric (entering by 2026).