Ahmedabad-based electric mobility startup Matter has successfully raised Rs 82.6 crore (approximately $10 million) in its first equity funding round. The funding round, detailed in regulatory filings accessed from the Registrar of Companies, saw Matter issuing 1,12,837 Compulsorily Convertible Preference Shares (CCPS) at an issue price of Rs 7,320 each.
Investors in this round include Japan Airlines & Translink Fund with Rs 25 crore, Info Edge-backed Capital 2B Fund contributing Rs 10.8 crore, Helena Special Investments Fund investing Rs 41.75 crore, and Abhay P Shah representing Miracle Carriers with Rs 5 crore.
Post-allotment, Matter has been valued at approximately Rs 1,690 crore ($204 million) according to estimates by TheKredible.
Founded by Mohal Lalbhai, Matter launched its first e-bike in early 2023 and commenced pre-orders in May the same year. Despite being in the pre-revenue stage during FY23, the company reported losses amounting to Rs 25 crore for the period. Matter is yet to disclose its annual results for FY24.
Positioning itself as a premium brand with bikes starting at Rs 1.7 lakh, Matter distinguishes itself from mass-market competitors like Ola Electric and Ather. Instead, it competes in the e-bike segment with players such as Tork Motors (backed by Bharat Forge), Ultraviolette (backed by TVS), and Revolt (controlled by RattanIndia Enterprises).
While Tork Motors recently raised $6 million from Maxis Capital, Ultraviolette is reportedly seeking a larger funding round of $100 million. Ola Electric, known for electric scooters, also has plans to enter the e-bike segment by FY26, further intensifying competition in the electric mobility space.
The funding secured by Matter is intended to expand its operations, distribution network, and enhance its factory setup, signaling ambitions for growth and market expansion in the competitive electric mobility landscape.