Ahmedabad-based electric-motorcycle manufacturer MATTER Motor Works has raised $25 million, approximately Rs 240 crore, in growth capital from existing investors. Participants include Helena, Capital 2B, Japan Airlines, TransLink Innovation Fund and the Shakopee Mdewakanton Sioux Community.
The round takes MATTER’s cumulative capital raised to approximately Rs 1,000 crore. More than Rs 750 crore has already been deployed across research and development, manufacturing infrastructure and market entry. The company will use the new investment to increase manufacturing and supply-chain capacity, extend its distribution network and introduce four additional motorcycles over the next 12 to 24 months.
MATTER currently has installed production capacity of close to 1,000 motorcycles a month, following an earlier pilot phase in which monthly output ranged between 100 and 200 units. It has produced or shipped approximately 1,500 motorcycles and plans to raise monthly capacity to about 5,000 vehicles by the end of the current financial year.
The company operates roughly 30 dealerships across 21 cities and expects to expand the network to approximately 50 outlets by the end of 2026, initially concentrating on western and southern India. A further 100 touchpoints are planned during the following year. Manufacturing scale and retail availability will be central to its effort to convert early orders into recurring deliveries.
MATTER’s first commercial platform, AERA, is positioned as India’s first geared electric motorcycle. It uses a four-speed manual transmission, marketed as HyperShift, instead of the single-speed configuration common in electric two-wheelers. The motorcycle also incorporates a liquid-cooled battery and motor, onboard charging compatible with a standard five-amp household socket, a connected seven-inch touchscreen and a claimed certified range of 172 kilometres.
The four planned motorcycles will be based on the AERA architecture and are expected to target the equivalent of India’s 150cc-to-200cc internal-combustion segment. Indicative prices are expected to range from approximately Rs 1.6 lakh to Rs 2.2 lakh. The programme is intended to broaden MATTER’s addressable market while reusing the company’s underlying battery, powertrain, electronics and software stack.
MATTER designs its core technology internally and manufactures important components, including battery packs and powertrains, in addition to undertaking final vehicle assembly. Its supply chain includes more than 150 vendors. Founder and Group CEO Mohal Lalbhai said the platform is supported by 111 granted patents, covering elements of the company’s vehicle and powertrain technology.
The funding follows a sharp increase in India’s electric two-wheeler volumes. Retail sales exceeded 200,000 units in a single month for the first time in July 2026, while several manufacturers have raised capital for capacity, distribution and product expansion. MATTER’s latest round is anchored entirely by existing backers, giving the company additional financing to move from limited commercial production toward a larger multi-product operation.
