Chara Technologies, a Bengaluru-based company developing rare-earth-free motors and controllers, has raised ₹52 crore ($6 million) in its Series A funding round led by Arkam Ventures.
The round also saw participation from Exfinity Venture Partners, Kalaari Capital, and IIMA Ventures.
The funds raised will be used to set up a new manufacturing facility and testing centre in Bengaluru to expand its annual production capacity from 20,000 to 100,000 units. Chara also intends to introduce new product lines, including lighter and higher-speed motors, larger-capacity variants, and models for industrial use.
Founded in 2019 by Bhaktha Keshavachar, Mahalingam Koushik, and Ravi Prasad, Chara Technologies focuses on developing synchronous reluctance motor architectures that eliminate the use of rare-earth magnets. The approach is designed to address supply chain dependence and cost fluctuations caused by China’s dominance in rare-earth materials, while also reducing environmental impact from mining activities.
The company has filed nine patents (one granted) and currently serves segments including two-wheelers, three-wheelers, four-wheelers, and off-highway applications such as agriculture and industry.
Chara has received product approvals from ARAI and ICAT, and its motor systems are being deployed in multiple sectors and geographies.
The company works with around 100 customers, including Greaves Cotton, BullWork, Sonalika, VST, and European OEMs. Its partnership with Greaves Cotton involves joint manufacturing of rare-earth-free synchronous reluctance motors and controllers at Greaves’ Shendra facility in Aurangabad. The collaboration is projected to achieve up to 50% cost savings and around 30% reduction in CO₂ emissions by eliminating the use of rare-earth magnets.
With operations already established in Belgium and Italy, Chara plans to expand further into North America and strengthen its presence in Europe. The company aims for sixfold revenue growth between FY25 and FY26, targeting sales of 40,000 motors by FY27, supported by increasing OEM adoption and new product launches.
To strengthen its governance, Chara has appointed Nagesh Basavanahalli as an Independent Board Member. The company currently employs about 100 people, including 75 engineers.
Bhaktha Keshavachar, Founder and CEO, Chara Technologies, said, “Deep-tech, autonomy in energy systems and manufacturing are key ingredients for a Viksit Bharat. At Chara, we are working diligently towards these goals. The infusion of capital will help us scale our product deployments, strengthen our manufacturing capability and invest in future products. Our goal is to build a deep-tech product company in India and deploy our products worldwide.”
Mahalingam Koushik, Co-Founder and CTO, Chara Technologies, said, “As more players enter the space, Chara remains committed to advancing the technology, scaling deployment, and continuing its leadership in building sustainable, high-performance motor systems that redefine what is possible without the dependence on rare-earths.”
Rahul Chandra, Managing Director, Arkam, said, “Arkam backs category-winning companies, and Chara is one of those pioneering companies that is solving a critical need for the EV ecosystem. Chara, with its combination of proven technology and design, to manufacturing capability is well placed to fulfil the growing needs of Indian auto OEMs for power train solutions. Chara is the first Indian company that allows for end-to-end domestic sufficiency to enable the massive mission of EV adoption in India. They have achieved the most important milestone of a deeptech company – commercialising production and proving on-road performance of a IP rich product starting from in-house design. The fresh capital will allow Chara to deliver on the quality and reliable production requirements of large OEMs.”
Chinnu Senthil Kumar, Managing Partner, Exfinity Venture Partners, said, “Exfinity Ventures is delighted to continue our participation in Chara Technologies’ Series A round led by Arkam Ventures. Exfinity’s thematic investment strategy, centered on the global technology trade war’s impact on rare earth materials and India’s unique engineering strengths, led us to Chara 3-4 years ago—a prediction validated by recent Chinese restrictions. Chara’s end-to-end powertrain architecture has demonstrated the ability to build sustainable and scalable motor systems for the EV ecosystem. The firm’s rare earth-free motors is a testament to India’s multidisciplinary engineering talent and aligns with our mission to back visionary entrepreneurs driving the ‘Make in India’ initiative for global markets.”
