In a significant development within India's deep-tech sector, Chara Technologies, a Bengaluru-based startup, has secured ₹52 crore (approximately $6
In a significant development within India’s deep-tech sector, Chara Technologies, a Bengaluru-based startup, has secured ₹52 crore (approximately $6 million) in a Series A funding round. The investment was led by Arkam Ventures, with participation from Exfinity Venture Partners, Kalaari Capital, and IIMA Ventures. This funding underscores the growing confidence in Chara’s innovative approach to electric motor technology, particularly its focus on rare-earth-free solutions.
Founded in 2019 by Bhaktha Keshavachar, Mahalingam Koushik, and Ravi Prasad, Chara Technologies has been at the forefront of developing electric motors and controllers that do not rely on rare-earth elements. This approach addresses critical challenges in the electric vehicle (EV) and industrial sectors, where dependence on rare-earth materials has raised concerns regarding supply chain stability and environmental impact.
The newly acquired capital will be utilized to establish a state-of-the-art manufacturing facility in Bengaluru, complete with dedicated testing and validation infrastructure. This expansion aims to increase Chara’s production capacity fivefold, from 20,000 to 100,000 units annually. The company plans to introduce new product lines, including lighter, higher-speed motors, larger-capacity variants, and models tailored for industrial applications.
Chara’s rare-earth-free motors are gaining traction in various markets. The company has already secured customers in Europe and is actively exploring opportunities in North America. This international expansion aligns with the global shift towards sustainable and locally sourced manufacturing solutions, reducing reliance on geopolitically sensitive materials.
The strategic importance of Chara’s technology is further highlighted by recent developments in global supply chains. In response to China’s export restrictions on rare-earth elements, India is accelerating efforts to develop alternative motor technologies. Companies like Chara Technologies are well-positioned to contribute to this initiative, offering viable solutions that enhance energy security and promote sustainable industrial practices.
Looking ahead, Chara Technologies aims to achieve a sixfold increase in its top-line revenue from FY25 to FY26, with a target of producing 40,000 motors by FY27. This ambitious growth trajectory reflects the company’s commitment to innovation and its role in shaping the future of electric mobility and industrial automation in India.
In conclusion, Chara Technologies exemplifies the potential of Indian deep-tech startups to address global challenges through innovation. By developing rare-earth-free motor technologies, the company is not only contributing to the advancement of sustainable manufacturing practices but also positioning itself as a key player in the global transition towards cleaner and more resilient industrial systems.
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