Ahmedabad-based electric motorcycle startup MATTER Motor Works plans to invest $100-150 million over the next three years to scale manufacturing capacity, deepen research and development, and strengthen its brand presence, as it steps up its push into India’s largely untapped electric motorcycle segment.

In an exclusive interaction with Fortune India, Mohal Lalbhai, Founder and Group CEO of MATTER, said the fresh capital deployment will build on the nearly $100 million already invested since the company’s inception in 2019, with a sharp focus on product development, R&D, marketing, and capacity expansion.

“We have invested close to $100 million since inception, and over the next three years we plan to invest another $100-150 million. This capital will primarily be deployed towards product development, research and development, brand promotion, and expansion of our manufacturing capacity,” Lalbhai said on the sidelines of MATTER’s Technology Day 3.0 in New Delhi on Tuesday.

At the event, MATTER unveiled India’s first AI-Defined Vehicle (AIDV) platform, marking what the company described as a decisive inflection point in the evolution of electric two-wheelers. The platform positions intelligence—rather than hardware alone—as the defining layer of next-generation vehicles and establishes a scalable roadmap spanning multiple products over the next 36–48 months. MATTER said the AIDV architecture will support improvements in performance, efficiency, safety, and lifecycle value, while complementary initiatives such as alternate material technologies will underpin its sustainability agenda.

Bets on iron-nitrogen motors to bypass magnet crunch

On supply-chain challenges, Lalbhai said while semiconductor shortages have eased, magnets have emerged as a key constraint for the EV industry. MATTER claims to have developed an indigenous motor technology using iron and nitrogen, significantly reducing dependence on rare-earth materials.

“The real challenge today is magnets, not chips. We’ve already developed an alternative to rare-earth magnets using iron and nitrogen, which delivers comparable performance without China dependency,” he said.

Apart from battery cells, magnets and semiconductor chips, MATTER said its motorcycles are largely localised, with even electronic assemblies manufactured close to its plant.

Backed by a diverse global investor base, including Capital2B (linked to Info Edge), Helena Special Investments (US), Japan Airlines, TransLink, the Saad Bhawan Group of Oman, and the Tolakiya Group of Surat, MATTER is positioning itself as a long-term, manufacturing-led EV company, rather than a pure venture-backed startup.

MATTER Motor Works

EV motorcycle maker MATTER to invest $100-150 mn over next three years