Indian EV Startup MATTER Raises $25M for Electric Bikes

India's electric motorcycle revolution just got a major boost as MATTER Motor Works landed $25 million in fresh funding to scale up production and launch four new models.

The Ahmedabad-based startup, founded in 2019, builds everything in-house from batteries to software. That rare approach has caught the attention of investors ranging from Helena, a global problem-solving organization, to Japan Airlines and even the Shakopee Mdewakanton Sioux Community in Minnesota.

MATTER's flagship AERA motorcycle isn't your typical electric scooter. It features a four-speed manual transmission called HyperShift, making it India's first geared electric motorcycle that actually shifts like a traditional bike. Riders get a 172-kilometer range, liquid cooling, and the ability to charge from any standard household outlet.

Founder Mohal Lalbhai says the new investment validates the company's bet that riders want electric bikes that feel like real motorcycles. "They have re-invested now that demand has proven the thesis," he noted, adding that more than three-quarters of the company's total funding has already gone into manufacturing and market entry.

The timing couldn't be better. India's electric two-wheeler market hit a milestone in July 2024, crossing 200,000 units sold in a single month for the first time. Sales jumped 56% compared to the previous year, with TVS and Ather leading the charge.

The Ripple Effect: MATTER's success is part of a larger wave lifting India toward cleaner transportation. River raised $120 million in August for similar expansion, while Yulu secured $93 million to grow its electric delivery fleet. The Indian government is backing this momentum with the PM E-DRIVE scheme, which allocates nearly $1.3 billion to support electric vehicles and charging infrastructure through 2028.

MATTER plans to use the fresh capital to expand manufacturing capacity, strengthen its supplier network, and invest heavily in distribution and brand building over the next two years. The company has already invested over $90 million into bringing its technology from concept to customer.

What makes this investment particularly meaningful is that these aren't new investors taking a gamble. These are existing backers doubling down after watching MATTER deliver motorcycles to real customers and generate genuine demand.

India's streets are getting quieter and cleaner, one gear shift at a time.