Tuesday, December 12, 2023

E-Bike Co Matter plans to raise up to $200 million to expand operations

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Gujarat-based electric two-wheeler maker Matter Group is looking to raise up to $200 million in funds over the next two years to expand operations and set up a factory that will roll out a million motorcycles.The capital will also be used to develop new products and scale up distribution in the local market, group CEO Mohal Lalbhai told ET.

The Temasek Holdings-backed company has so far raised about $100 million from investors.

“We are looking at raising between $100 million and $200 million in the next two years to establish a new manufacturing facility with total installed capacity for producing 1 million e-motorbikes,” Lalbhai said. “We are scouting for a location for the new unit, which is likely to be finalised in the next six months.”

The company will invest about $100 million towards setting up the new unit, which will be commissioned in early 2026, Lalbhai said, adding that the remaining resources will go towards developing new products and for expanding reach.

Matter, which drove in its first electric motorcycle AERA earlier this fiscal, said it sold the planned annual production of 40,000 units within a month of launch.”We will start deliveries of the products next quarter. We are also in the process of ramping up production at our existing facility to 120,000 units per annum,” Lalbhai said. “The increased capacity should come on-stream by the middle of next year.”Matter plans to re-open bookings by the start of the new fiscal year. The company had opened bookings online for the first two variants of AERA.

It has signed up 200 dealers, of which some 50 will commence operations in the fourth quarter of the ongoing financial year.

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