Electric motorcycle and energy storage solutions company Matter has raised ₹2.4 billion (~$25 million) in fresh growth capital from existing investors to expand production capacity, retail footprint, and electric motorcycle portfolio.

The latest funding takes Matter’s total capital raised to approximately ₹10 billion (~$104.17 million). More than ₹7.5 billion (~$78.13 million) of this funding has been deployed toward research and development, product development, manufacturing, and market expansion.

Matter develops its electric motorcycle powertrain, battery systems, control electronics, and software in-house and manufactures motorcycles at its Ahmedabad facility.

The company said it is expanding its monthly production capacity to 1,000 motorcycles, with plans to subsequently increase it to 2,500 units per month. It is also widening its retail presence across India.

Matter plans to introduce four motorcycles based on its AERA platform over the next 12 to 24 months. The upcoming motorcycles will use the company’s in-house powertrain, battery, and software systems.

The company said it has secured 111 granted patents.

Electric vehicle sales in India reached 837,453 units in the second quarter of 2026, up 52.3% from 549,900 units in the corresponding quarter of 2025. Electric two-wheelers accounted for nearly 63% (524,910 units) of total EV sales. India now has over 9.19 million registered EVs, according to the data released by the Ministry of Road Transport and Highways through its Vahan Dashboard.

In April, the Ministry of Heavy Industries halved Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement incentives for electric two-wheelers (e-2Ws) to ₹2,500 (~$26.17)/kWh, capped at ₹5,000 (~$52.4) per vehicle, while extending eligibility to July 31, 2026. The lower subsidy raises upfront costs for buyers, potentially affecting demand, though private and commercial e-2Ws remain eligible. The maximum eligible ex-factory price has been set at ₹150,000 (~$1,597), and the total financial support allocated for this segment is ₹17.72 billion (~$188.74 million).