Ambitious Funding and Expansion Plans
Ahmedabad-based electric motorcycle startup Matter Motors is gearing up to raise $200 million over the next three years to fuel its aggressive expansion strategy. The company, founded in 2019, is also targeting a public listing in the next three to four years as it looks to scale up operations, roll out new models, and expand its market presence.
Product Pipeline: Three New Models in Three Years
Matter Motors’ current lineup features the Aera, India’s first electric bike with a 4-speed manual gearbox, retailing at around ₹1.8 lakh in Ahmedabad and Bengaluru. Building on this, the company plans to launch at least three new electric motorcycle models over the next three years, targeting different segments, particularly the high-volume 125cc to 200cc equivalent category. The next launches include a 150cc ICE-equivalent model in late 2026 and a 125cc variant in 2027.
Retail and Manufacturing Expansion
With deliveries of the Aera starting in late 2024, Matter is aggressively expanding its retail footprint from just two touchpoints to 45 by the end of this year, focusing on major cities like Delhi, Mumbai, Pune, Bengaluru, and Chennai. The company currently manufactures at a pilot facility in Ahmedabad, with capacity being ramped up to 1.2 lakh units annually. Once monthly production hits 5,000 units—expected by mid-next year—Matter will begin scouting for a new, larger manufacturing plant.
Eyeing Exports and Market Leadership
While the domestic market remains a priority, Matter Motors is preparing to enter export markets starting next year, with plans to explore Southeast Asia, Eastern and Southern Europe, East Africa, and Latin America. The company’s strategy is to focus on geared electric motorcycles rather than scooters or premium bikes, aiming to capture the mass-market segment.
Financial Health and Investor Backing
Matter has already raised $75 million through Series B rounds, with a current valuation of $230 million. Key investors include Helena, Capital 2B, Japan Airlines & Translink Innovation Fund, LetsVenture, Baring Private Equity Partners, and Saad Bahwan Investment Management Company. The company expects to achieve EBITDA breakeven at a monthly volume of 20,000–30,000 units, setting a clear profitability benchmark ahead of its planned IPO.
Market Context and Competitive Landscape
The electric motorcycle segment in India is still nascent, with less than 1% market penetration. Matter Motors competes with players like Revolt Motors, Oben Electric, Ola Electric, and soon Ather Energy, Royal Enfield, and Hero MotoCorp. The company’s focus on innovation—such as multi-speed gearboxes and liquid cooling—positions it as a technological leader in a segment poised for rapid growth as India’s mobility landscape shifts toward electrification.
