Team StartupCity

• Chara raises Rs 52 Crore in Series A round led by Arkam Ventures
• Funds to be used for new plant, product launches, and global expansion
• Aims to scale production 5X and target 40,000 motor sales by FY27

Chara Technologies, a Bengaluru based startup building rare-earth-free electric motors, has raised Rs 52 crore in its Series A funding round led by Arkam Ventures. Existing investors Exfinity Venture Partners, Kalaari Capital, and IIMA Ventures also participated in the round.

The company will use the funds to set up a new testing and validation facility in Bengaluru. This will help boost Chara’s production capacity from 20,000 to 100,000 units annually. Part of the investment will also go into launching new motor variants, including lighter, high-speed, and larger industrial models.

Chara is also pushing forward with its international expansion plans, with a focus on North America and deeper European markets, building on its current presence in Belgium and Italy. The company aims to grow its revenue 6X from FY25 to FY26, with a target to sell 40,000 motors by FY27.

Founded in 2019, Chara develops electric motors and controllers for EVs, industrial machinery, and agricultural equipment, all without using rare earth materials, a key advantage as the global market faces supply disruptions due to Chinese export restrictions.

Also Read: We360.ai Raises $2 Million to Boost AI Workforce Analytics

Bhaktha Keshavachar,CEO of Chara Technologies, said the funding will help Chara scale manufacturing, expand product lines, and strengthen India’s self-reliance in clean mobility tech.

Rahul Chandra, MD of Arkam Ventures, said, “Chara is India’s first deep-tech company to design, manufacture, and commercialize rare-earth-free motors at scale”.