Electric bike manufacturing startup Matter has successfully raised around $10 million in a private placement offer, drawing investments from Capital 2B, Japan Airlines, and TransLink Innovation Fund. This marks the first round of equity funding for the Ahmedabad-based e-bike manufacturer.
Regulatory filings with the Ministry of Corporate Affairs revealed significant contributions. Japan Airlines and TransLink Fund invested INR 25 crore, while Capital 2B Fund added INR 10.8 crore. Additionally, Helena Special Investments Fund I and Abhay P Shah, through Miracle Carriers & Trading Co., invested INR 41.75 crore and INR 5 crore, respectively.
Founded in 2019 by Mohal Lalbhai, Arun Pratap Singh, Kumar Prasad Telikepalli, and Saran Babu, Matter focuses on producing premium electric motorcycles. The company launched its first bike in early 2023 and began accepting pre-orders in May of the same year. Previous funding rounds included a $10 million investment in 2022 from Climate Angels Fund, Baring Private Equity Partners, and other investors.
Valuation and Market Position
Post-allotment, Matter’s valuation stands at approximately INR 1,690 crore ($ 204 million), according to market estimates. Unlike competitors such as Ola Electric and Ather, Matter targets a premium market segment with bike prices starting at INR 1.7 lakh. The company avoids competing in the mass market, differentiating itself from traditional manufacturers.
In the e-bike segment, Matter competes with Bharat Forge-backed Tork Motors, TVS-backed Ultraviolette, and RattanIndia Enterprises’ Revolt. Tork Motors recently raised $6 million from Maxis Capital, and Ultraviolette is reportedly in talks for a USD 100 million round. In the electric scooter market, Ola Electric plans to enter the e-bike segment by FY26.
Future Prospects
During the fiscal year ending March 2023, Matter was in a pre-revenue stage, recording losses of INR 25 crore. The company has yet to file its annual results for FY24. Despite the financial challenges, Matter’s strategic positioning as a premium brand highlights its growth potential in the competitive e-bike market.
Matter aims to use the new funding to expand its operations, distribution network, and factory setup. The company continues to seek additional investments, reportedly targeting a USD 200 million round to further accelerate its growth.
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