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Electric mobility and energy storage-focused technology startup Matter has closed an initial round of equity funding at $10 Mn with investment from Info Edge’s Capital 2B Fund 1, Climate Angel Fund, and several other Indian and overseas HNI’s.

The fresh funds will be used towards the launch of its new line of electric mobility and energy storage products. In fact, Matter is eyeing the launch of its first electric motorcycle later in the year.

Founded by Mohal Lalbhai, Arun Pratap Singh, Kumar Prasad Telikepalli, and Saran Babu in 2019, Matter claims to have invested $7.5 Mn of capital so far in the research and development of its proprietary technology stack. 

With the capital, the startup has already launched India’s first active liquid-cooled two-wheeler electric vehicle (EV) battery MatterEnergy 1.0 in April this year. Matter has also developed a drive-train solution in the form of Matter Drive 1.0. 

“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 catalyse the clean energy transition in India,” said Lalbhai, founder and CEO of Matter. 

Both its battery and the drive-train technologies have been developed to be used in manufacturing its own EVs and would be part of its upcoming two-wheeler, Lalbhai told Inc42, adding that these technologies are not for sale to other EV OEMs.

“We are not selling MatterEnergy 1.0 or Matter Drive 1.0 to other companies simply because it is just not the battery pack, it is also the accessories and overall system that goes with it. That is where it is not really a plug and play solution, rather it has to be taken into the architecture from the get-go,” added Lalbhai.

All the powertrain components for Matter’s products have been designed by its in-house team and sourced locally, said the startup. 

“Matter, with its homegrown technology stack, is set to redefine the two-wheeler mobility and energy segments,” said Vibhore Sharma, partner, Capital 2B. 

Info Edge’s new Alternative Investment Fund scheme Capital 2B Fund 1 has a total corpus of $75 Mn, which is aimed at investing in deep technology and patents.

“Matter is one of the first investments from our Fund, and is promising of an exciting journey, one to which I would be as close to the action as possible,” added Sharma.

Matter is already backed by private equity firm Baring Private Equity Partners. 

Speaking about the new fundraise, Rahul Bhasin, managing partner at Baring Private Equity Partners said, “Baring in India, has successfully partnered with entrepreneurs in building and growing multiple new-age businesses. Matter’s product portfolio, EVs and Energy Storage products for every Indian home, should help progress towards creating a more sustainable future for our country.”

Meanwhile, despite safety concerns due to fire incidents with two-wheeler EVs and a persisting global supply chain issue, investors are not any less willing to invest in the EV sector in India.

Speaking to Inc42 recently, several investors said that the current hurdles are transitory and they are looking at the long-term growth potential of the entire EV segment.

In May, the Indian startups in the EV space reportedly raised over $170 Mn of funding despite the Indian startup ecosystem grappling with a visible ‘funding winter’. 

In another latest fundraising in the EV sector, EV charging infrastructure startup Statiq raised INR 200 Cr ($25.7 Mn) in its Series A round led by Shell Ventures. 

As per a Colliers report, the EV ecosystem in India is likely to see investments of INR 94,000 Cr ($12.6 Bn) across the automotive value chain over the next five years.