MATTER Motor Works, the Ahmedabad-based electric vehicle start-up. It has raised ₹240 crore ($25 million) in funding from its existing stakeholders. This round brings the company’s total capital raised to around ₹1,000 crore. With over ₹750 crore invested till now towards research & development, product development, manufacturing and expansion. Announced on 25th August, 2026, this funding reflects an evolution from validation of the technology to scaling of the technology across India.

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Relevance of the Funding

The journey has been about solving a challenge that the rest of the EV ecosystem chose to ignore. Making the two-wheeler experience electric without compromising the riding experience. While the rest of the industry was focusing on developing automatic scooters. MATTER developed a geared electric two-wheeler for a nation of two-wheelers. The funding comes in to bridge the divide between desire and ownership.

What the Funding Will Help to Achieve?

MATTER has specified three specific goals for the current round:

  • Increasing capacity: This month’s capacity has been increased to 1,000 units per month and will be further scaled up to 2,500 units in coming months. It is aimed at reducing the time needed to ship bikes to customers.
  • Increasing retail coverage: The brand is expanding its geographical coverage into the Indian motorcycling hinterland. Towns and cities where motorcycles are used not as fashion accessories but as means of daily transportation.
  • Expanding the product line: Matter aims to produce four more motorcycles in the coming 12-24 months. All of which will share the same powertrain, battery and software from Matter’s in-house engineering.

AERA platform: four years of development

According to MATTER, the AERA platform has been developed for four years specifically with Indian road conditions in mind. MATTER’s engineering team based in Ahmedabad is responsible for development and manufacturing of powertrain, battery systems, control hardware and software.

Some of the important features of the AERA programme are as follows:

  • HyperShift manual transmission system: The product is marketed as India's first manual transmission system on an electric motorcycle. It comprises a 4-speed transmission system with a clutch lever and foot shifter. In simple words, provide the shifting experience which feels real and not a simulation of the same.
  • Battery and Range: Liquid cooled battery of 5 kWh coupled with 11.5 kW electric motor provides a range of 172 km. On board charger with standard 5 amps outlet charging facility for those who lack access to fast chargers.
  • Connectivity: The 7 inch screen takes care of navigation, media and call integration.
  • Testing and refinement: More than 10 million kilometers of on road data gathered through AERA platform. It is being used in product development for various aspects like thermal management etc.
  • IP Portfolio: 111 patents and Best Patent Portfolio awards won by MATTER at CII Industrial Intellectual Property Awards 2025.

Price and Market Context

At present, AERA 5000+ is available in one model. That retails for ₹1.94 lakh (excluding showroom prices). On-road pricing in metropolitan areas starts from ₹2.02 lakh to ₹2.11 lakh.

Whereas the market features mostly automatic scooters and single-speed electric motorbikes. AERA's 4+N manual transmission is the key distinguishing feature. It addresses the market segment consisting of consumers interested in having a motorcycle with the same characteristics as their childhood motorcycles.

ELCTRIK Speaks

MATTER’s newest capital injection is more of an affirmation of a wager that the startup has already made. Indian motorcyclists will forego the pleasure of riding a geared two-wheeler for the sake of an all-electric one. With such a balance between sound engineering skills and equally excellent execution in manufacturing, distribution, and after-sales service. MATTER might just end up changing the definition of an electric bike in India with the AERA platform. The only question left is whether the company will beat other players who are trying to recreate the same geared EV experience.

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