Funding · Mobility & Logistics

Matter Motor Works raises $25 million growth capital

By Startup Enthusiast · 24 August 2026

What they do

Matter Motor Works builds electric motorcycles featuring geared transmissions and in-house developed battery and powertrain technology

The company secured $25 million in growth capital from existing investors to scale manufacturing and expand its product portfolio

This funding supports the launch of four new motorcycle models over the next two years as the firm targets the 150-200cc segment

Matter Motor Works raised $25 million in growth capital on August 25, 2026.
The investment comes from existing backers including Helena, Capital 2B, Japan Airlines, TransLink, and SMSC.
The company plans to use these funds to expand its manufacturing capacity and supplier network.
Matter will also invest in brand building and the development of four new motorcycle models.
These upcoming models will target the 150-200cc segment with prices ranging from ₹1.6 lakh to ₹2.2 lakh.
The firm aims to increase production capacity to 5,000 vehicles per month by the end of FY26.

The Indian electric two-wheeler market reached over 200,000 retail sales in July 2026.
Electric motorcycle penetration remains low at 0.1% compared to 25% for electric scooters.
The government's PM E-DRIVE scheme provides a ₹10,900 crore outlay to support electric vehicle adoption until 2028.
Competitors like Ather and River have also recently raised significant capital for expansion.

Matter produces the AERA, which is India's first geared electric motorcycle.
The bike features a four-speed manual transmission and a liquid-cooled battery system.
The company develops its own battery, powertrain, electronics, and software in-house.
It currently operates 30 dealerships across 21 cities with plans to add 100 more touchpoints.
The firm has filed 450 patents and has been granted 111 of them.
It maintains a network of over 150 suppliers to support its production operations.

Helena (existing) — Existing investor in Matter Motor Works.
Capital 2B (existing) — Existing investor in Matter Motor Works.
Japan Airlines (existing) — Existing investor in Matter Motor Works.
TransLink (existing) — Corporate venture fund and existing investor.
Shakopee Mdewakanton Sioux Community (existing) — Existing investor in Matter Motor Works.