Chara Technologies, a Bengaluru-based deep-tech startup specialising in rare-earth-free electric motors, has successfully raised ₹52 crore (approximately $6 million) in a Series A funding round. The round was led by Arkam Ventures, with participation from Exfinity Venture Partners, Kalaari Capital, and IIMA Ventures. The funding will be utilised to scale production, establish a new manufacturing facility and testing center in Bengaluru, and expand the company’s portfolio of sustainable motor solutions.
Focus on Rare-Earth-Free Motor Technology
Founded by Bhaktha Keshavachar, Mahalingam Koushik, and Ravi Prasad, Chara Technologies develops synchronous reluctance motors that eliminate the use of rare-earth magnets. This innovation addresses supply chain dependencies, reduces cost fluctuations caused by global rare-earth material markets, and minimises the environmental impact associated with mining.
Chara’s motors deliver performance comparable to permanent magnet synchronous motors (PMSMs), while being 15–20% more cost-effective. All motor systems are manufactured in India, leveraging proprietary motor control algorithms and power electronics architecture.
Partnerships and Product Approvals
Chara Technologies has received product approvals from ARAI and ICAT and serves multiple segments, including two-wheelers, three-wheelers, four-wheelers, and off-highway applications in agriculture and industry. Key collaborations include partnerships with Greaves Cotton, BullWork, Sonalika, and VST, as well as several European OEMs.
A strategic collaboration with Greaves Cotton enables joint manufacturing of rare-earth-free synchronous reluctance motors and controllers at the Shendra facility in Aurangabad. This partnership is projected to deliver up to 50% cost savings and a 30% reduction in CO₂ emissions by eliminating the use of rare-earth materials.
Growth Plans and Market Expansion
Chara Technologies aims for sixfold revenue growth between FY25 and FY26, targeting 40,000 motor sales by FY27, driven by growing OEM adoption and new product launches. The company also plans to expand into North America and strengthen its presence in Europe, positioning itself as a global leader in sustainable electric motor technology.
Industry Recognition and Governance
To bolster governance and strategic guidance, Chara has appointed Nagesh Basavanahalli as an independent board member. Currently, the company employs around 100 people, including 75 engineers, underscoring its focus on innovation and high-quality engineering.
Rahul Chandra, Managing Director of Arkam Ventures, stated:
“Arkam backs category-winning companies, and Chara is a pioneering company solving a critical need for the EV ecosystem. Their proven technology and manufacturing capabilities position them well to meet growing OEM demand for efficient powertrain solutions.”
This Series A funding round represents a significant step forward in accelerating India’s EV ecosystem while promoting sustainable, cost-effective, and high-performance motor technologies.
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