Ahmedabad Startup Matter Electric Mobility Raises $10 Million

By Sunil Sonkar
2 Min Read
Ahmedabad Startup Matter Electric Mobility Raises $10 Million

Electric vehicle (EV) is the future of daily commuting and the industry is growing at a rapid pace. Lately, Ahmedabad-based startup Matter Electric Mobility has successfully secured $10 million in its first equity funding round to back the segment further. The fresh capital also highlights the confidence of investors in the future of electric mobility and also in the potential of the startup.

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Matter Electric Mobility has issued more than 1.12 lakh Compulsorily Convertible Preference Shares (CCPS) at Rs 7,320 each. This is aggregated to Rs 82.6 crore (approximately $10 million). Some of the notable investors were Japan Airlines and Translink Fund with Rs 25 crore contributions, Info Edge-backed Capital 2B Fund with Rs 10.8 crore, Helena Special Investments Fund and Abhay P Shah (representing Miracle Carriers) with Rs 41.75 crore and Rs 5 crore respectively.

It is estimated that the round has increased the value of Matter to about Rs 1,690 crore ($204 million). The company is further in talks to raise another $200 million for the expansion of its operations, distribution and factory setup. The primary focus is to scale its presence in the competitive e-bike market.

Matter launched its maiden bike last year and started accepting pre-orders in May 2023. It is a year-old company and still in the pre-revenue stage.

Its e-bike starts at Rs 1.7 lakh. It is basically targeting a niche segment and not the mass audience. Its competitors are Bharat Forge-backed Tork Motors, TVS-backed Ultraviolette and RattanIndia Enterprises’ Revolt.

Tork Motors raised $6 million from Maxis Capital earlier this year. Ultraviolette is learned to be in discussions with investors to secure around $100 million. Ola Electric is in plans to enter the e-bike segment by FY26.

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