Electric Mobility Startup Matter Raises $10M in Maiden Funding Round

Matter, an Ahmedabad-based electric mobility startup, has successfully raised Rs 82.6 crore (approximately $10 million) in its first-ever equity funding round. The new funding was documented through a regulatory filing with the Registrar of Companies.

Details of the Funding Round

Matter’s board issued 112,837 compulsory convertible preference shares (CCPS) at an issue price of Rs 7,320 each, totaling Rs 82.6 crore. Notable investors in this round include:

• Japan Airlines & Translink Fund: Rs 25 crore
• Info Edge-backed Capital 2B Fund: Rs 10.8 crore
• Helena Special Investments Fund: Rs 41.75 crore
• Abhay P Shah (on behalf of Miracle Carriers): Rs 5 crore

Following this funding round, Matter’s post-allotment valuation is estimated at around Rs 1,690 crore ($204 million), according to TheKredible.

Future Expansion Plans

Matter, which launched its first e-bike in early 2023 and began pre-orders in May 2023, is currently in the pre-revenue stage. Despite reporting losses of Rs 25 crore for the fiscal year ending March 2023, the company is actively seeking additional funding to the tune of $200 million. These funds are intended to support the expansion of its operations, distribution, and factory setup.

Market Differentiation

Positioning itself as a premium brand, Matter’s e-bike prices start at Rs 1.7 lakh. Unlike competitors Ola Electric and Ather, which target mass audiences, Matter focuses on a niche market segment.

Competitive Landscape

In the e-bike sector, Matter faces competition from:

• Tork Motors: Backed by Bharat Forge, raised $6 million from Maxis Capital in January 2024.
• Ultraviolette: Supported by TVS, reportedly in talks to raise $100 million.
• Revolt: Controlled by RattanIndia Enterprises.

Additionally, Ola Electric, known for manufacturing electric scooters, plans to enter the e-bike market by FY26.

Matter is yet to file its annual results for FY24. The startup’s strategic focus on the premium segment aims to carve out a unique space in the competitive e-bike market.