Mumbai: Electric motorcycle manufacturer Matter Motor Works is seeking to raise fresh capital in a Series C funding round. This could value the company at around $300 million post-money, two people aware of the matter told Mint.
Co-founder Mohal Lalbhai confirmed the fundraise, saying the company is in discussions with existing and new investors to support market expansion this financial year, but declined to comment on valuation. “We are currently in the process of raising around $50 million from existing and new investors as we look to grow our market presence over this financial year,” he said.
The round is being led by existing investors, including Capital 2B, and Japan Airlines’ JAL Innovation Fund, one of the two people quoted above said on the condition of anonymity. Capital 2B is a tech and venture fund that operates with financial backing from Singapore’s state-owned investment firm Temasek Holdings Pte and Sanjeev Bikhchandani’s Info Edge. The round is likely to close within three months.
The fundraising comes as . Electric motorbikes contributed less than 1% of the 1.14 million battery-powered two-wheelers sold during FY25, according to a report by government think tank Niti Aayog.
Matter will use the proceeds towards growth activities, specifically distribution, marketing, and brand awareness as the Ahmedabad-based company scales from a pilot phase to an expansion and growth phase, Lalbhai said.
He added that the fundraise is not aimed at expanding manufacturing capacity, with its existing plant capable of producing up to 10,000 units a month.
The current capital raise comes two years after a Series B round, in which the company raised $35 million from investors such as US-based venture capital firm Helena, Capital 2B, JAL Innovation, and Oman-based Saad Bahwan Investment Management Company. It was valued at $230 million post-money after that round.
After this round closes, the company plans to raise another $75 million next year to reach self-sustainability before considering an initial public offering, Lalbhai told Mint.
Matter Motor Works was established in 2019 by co-founders Mohal Lalbhai, Arun Pratap Singh, Saran Babu, and Prasad Telikapalli. The company manufactures electric motorcycles in the 200 cc segment, priced around ₹1.8 lakh each.
While the company’s flagship is its 200 cc motorcycle, called Aera, which is also the country’s first geared e-motorcycle, it is also looking at new products in the 150cc and 125cc space over the next 12 to 15 months, the co-founder added.
In the 200cc segment, Aera competes with internal combustion engine models such as Yamaha R15 V4, TVS Apache RTR 160, Bajaj Pulsar NS200 and KTM 200 Duke, while also facing competition from electric rivals including Revolt Motors, Oben Electric and Ola Electric.
Meanwhile, Ather Energy is exploring entry into the 125–300cc category, while legacy manufacturers such as Royal Enfield and Hero MotoCorp are also preparing to enter the segment.
Still an early-stage firm, Matter closed FY26 with a top line of around ₹20 crore, and sales of around 1,000 units, Lalbhai said, with a heavy cash burn of roughly ₹300 crore to support R&D and a 600-person team.
Fortune India had reported in January this year that the company plans to invest $100-150 million over the next three years to scale manufacturing capacity, deepen research and development, and strengthen its brand presence.
As India charts its green energy transition and looks to contain fossil fuel imports, the government’s push to promote e-motorycles could provide a timely tailwind for Matter.