Deeptech startup Chara Technologies raises Rs 52 crore from Arkam Ventures, others

Deeptech startup Chara Technologies, which manufactures rare-earth-free electric motors and controllers, has raised Rs 52 crore in a funding round led by Arkam Ventures, with participation from Exfinity Venture Partners, Kalaari Capital, and IIMA Ventures.

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The startup plans to use the new capital to expand its rare-earth-free powertrain platform, establish a state-of-the-art factory and testing facility in Bengaluru, and increase production capacity fivefold to 1 lakh units a year. The expansion marks a key step in Chara’s scale-up journey as it prepares to meet growing demand across the electric mobility and industrial sectors.

Founded in 2019 by Bhaktha Keshavachar, Mahalingam Koushik, and Ravi Prasad, Chara designs and manufactures synchronous reluctance motors that eliminate the use of magnets, reducing costs and environmental impact compared with conventional permanent-magnet synchronous motors.

Its proprietary motor-control algorithms, power electronics, and software platform enable a modular, scalable powertrain system suited for EV two-wheelers, four-wheelers, agricultural, and industrial applications.

The startup claims that it currently serves nearly 100 customers, including Greaves Cotton, BullWork, Sonalika, and VST, and has entered a strategic partnership with Greaves Cotton, which will manufacture rare-earth-free motors and controllers at its Shendra, Aurangabad facility

Chara’s growth comes as India moves to establish a National Critical Minerals Stockpile to ensure domestic availability of key materials following China’s export restrictions on rare-earth magnets.

The startup, which also has offices in Belgium and Italy, plans to expand into North America and deepen its European presence. It is targeting a six-fold increase in revenue between FY25 and FY26 and aims to sell 40,000 motors by FY27.