Tech start-up Matter raises $10 million

ClimateAngels | Jun 25, 2022

Technology start-up, Matter has raised $ 10 million from Capital 2B Fund 1, Climate Angels Fund and other investors. Mohal Lalbhai, founder and CEO, Matter said this is part of the $ 20 million fundraising planned by the firm. 

Matter is a vertically integrated technology company with a presence in the OEM segment and battery segment. Capital 2B is a technology fund backed by Infoedge. Baring Private Equity Partners is an existing investor in Matter. Lalbhai said the company was getting ready to launch its electric motorcycle in the second half of 2022.

The company will start manufacturing at its Ahmedabad plant with a capacity of 60,000 vehicles a year. Every component barring cells, magnets and semiconductors was manufactured in-house, Lalbhai said.

Matter’s energy storage subsidiary, Matter Energy, has started delivering batteries to non-compete electric vehicles, home inverters and UPS  segments. Matter is also working on telecom batteries and the energy storage segment. Funds have been raised by the parent and would be deployed in both companies, Lalbhai said. 

Matter, founded in 2019 by Lalbhai along with Arun Pratap Singh, Kumar Prasad Telikepalli and Saran Babu, has invested $ 7.5 million in R&D and development of its proprietary stack. Matter has launched India’s first active liquid-cooled 2-wheeler EV battery, MatterEnergy 1.0, which is designed to address concerns around active thermal management in E2Ws.

Lalbhai said with their technologically differentiated product, they were looking to be a significant player in the electric motorcycle space, which accounted for 65% of the 2W market in the country. Vibhore Sharma, partner, Capital 2B said, Matter, with its homegrown technology stack, was set to redefine the two-wheeler mobility and energy segments. The matter was one of the first investments from their Fund, Sharma said.

Rahul Bhasin, managing partner, Baring Private Equity Partners India Matter had created products that would make a positive impact on people and the planet