In a fresh fundraising round, electric mobility startup Matter has raised Rs 82.6 crore, or roughly $10 million. This is the manufacturer of e-bikes from Ahmedabad’s first round of equity funding.
In order to raise Rs 82.6 crore (roughly $10 million), the board at Matter has issued 1,12,837 CCPS at an issue price of Rs 7,320 each, according to its regulatory filing that can be viewed through the Registrar of Companies.
While Capital 2B Fund, backed by Info Edge, contributed Rs 10.8 crore, Japan Airlines & Translink Fund invested Rs 25 crore. Abhay P Shah invested Rs 5 crore and Rs 41.75 crore on behalf of Miracle Carriers, and Helena Special Investments Fund invested Rs 41.75 crore.
The company’s post-allotment valuation, according to media estimates, is approximately Rs 1,690 crore, or $204 million.
The e-bike maker allegedly had discussions to raise $200 million to improve its factory, distribution network, and operational capacity.
Early in 2023, Matter unveiled their first bike, and in May of that same year, pre-orders opened. During the fiscal year that concluded in March 2023, the year-old company was in the pre-revenue stage, and during that same period, its losses totaled Rs 25 crore. The annual results for FY24 have not yet been filed.
Matter markets itself as a premium brand, which is supported by the fact that its starting price is Rs 1.7 lakh. Matter does not compete with Ola Electric and Ather or other traditional manufacturers; rather, it is not aimed at a general public.
Matter faces competition from Tork Motors, backed by Bharat Forge, Ultraviolette, backed by TVS, and Revolt, controlled by RattanIndia Enterprises, in the e-bike market. While Ultraviolette has reportedly been in talks to raise a larger round of funding totaling $100 million, Tork Motors raised $6 million from Maxis Capital in January of this year. The company Ola Electric, which presently produces electric scooters, intends to join the e-bike market by the year FY26.
