Electric mobility startup Matter has secured $10 million (Rs 82.6 crore) in its first-ever equity funding round. This investment will fuel the company’s growth and expansion plans in the burgeoning electric bike (e-bike) market.

Key Investors and Valuation

Prominent investors participated in the investment round, including Abhay P Shah on behalf of Miracle Carriers (Rs 5 crore), Info Edge-backed Capital 2B Fund (Rs 10.8 crore), Japan Airlines & Translink Fund (Rs 25 crore), and Helena Special Investments Fund (Rs 41.75 crore). Matter’s post-allotment valuation is estimated by TheKredible to be around Rs 1,690 crore ($204 million).

Growth Trajectory and Market Positioning

Matter targets the high-end e-bike market and was introduced in early 2023. In May 2023, the business started taking preorders for their debut bicycle. Matter apparently wants to fund an extra $200 million to expand operations, distribution networks, and construct a manufacturing plant. FY24 financials are not yet public.

With premium e-bikes starting at Rs 1.7 lakh, Matter targets a different client demographic than mass-market competitors like Ola Electric and Ather. Their main rivals in the high-end e-bike market include Revolt (run by RattanIndia Enterprises), TVS-backed Ultraviolette, and Tork Motors (supported by Bharat Forge). Ultraviolette is supposedly in negotiations for a larger $100 million round of finance, despite Tork Motors having already raised $6 million this year. Furthermore, by FY26, market leader Ola Electric intends to join the e-bike space.

Matter faces competition in the e-bike market from Tork Motors, supported by Bharat Forge, Ultraviolette, funded by TVS, and Revolt, managed by RattanIndia Enterprises. In January of this year, Tork Motors raised $6 million from Maxis Capital, while Ultraviolette has apparently been in talks to raise a larger round of funding totaling $100 million. By FY26, Ola Electric, a company that already produces electric scooters, intends to join the e-bike market.

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