Tech startup Matter raises $10 mn to scale up e-mobility, energy storage

Info Edge-backed technology fund Capital 2B, Climate Angel Fund lead investors in Matter's first external round of funding

Ahmedabad-based tech and EV startup Matter has raised $10 million (Rs 78 crore roughly) in a round led by Info Edge-backed technology fund Capital 2B. The firm plans to use the funds for the launch of its upcoming electric two-wheeler that will feature the country's first active liquid-cooled battery.

In its first round of external fund raising, Matter expects to raise another $10 million even as it plans to deploy the capital towards continuous technological innovations, manufacturing, and marketing. While the flagship firm Matter is engaged in development of e-two-wheelers which it plans to launch later this year, the company's subsidiary MatterEnergy is working on research and innovation in battery packs and battery management systems.

Since inception in 2019, Matter has invested $7.5 million (Rs 58 crore) into the R&D of its proprietary technology stack. The firm's battery storage arm MatterEnergy is working on the market launch of MatterEnergy 1.0, India’s first active liquid-cooled 2-Wheeler EV battery to be deployed in its upcoming e-two-wheeler.

The new investments of $10 million will be used for the launch of its line of electric mobility and energy storage products, which Matter founder and CEO Mohal Lalbhai said will be launched by the second half of 2022.

"Matter is gearing up for its first electric motorcycle launch this year and we aim to develop a world-class portfolio of EV and energy storage products to catalyze the clean energy transition in India," said Lalbhai while adding that the pilot facility will carry an initial capacity of 60,000 vehicles per annum.

While the liquid cooled active battery will be used exclusively in-house for its own vehicles, the company is also developing battery storage solutions for stationary and non-automotive purposes.

Meanwhile, according to Lalbhai, MatterEnergy's stationary applications current capacity of 200 Mw hours is expected to be ramped up to 2 Gw hours over the next two years.