Chara Technologies raises $6 million to boost production of rare-earth-free motors
Chara Technologies, a Bengaluru startup making rare-earth-free motors and controllers, just raised ₹52 crore ($6 million) in Series A funding led by Arkam Ventures, with Exfinity, Kalaari Capital, and IIMA Ventures also on board.
The fresh funds will help Chara ramp up production and speed up new product development.
Chara's motors are cheaper and more sustainable
Since 2019, Chara has been building motors that skip rare-earth magnets—making them cheaper (by 15-20%), efficient, and more sustainable.
With this boost, they're planning to expand their Bengaluru plant's capacity from 20,000 to 100,000 units a year and roll out lighter and faster motor options for different industries.
They've already partnered with Greaves Cotton for co-manufacturing
Chara already counts about 100 customers—including Greaves Cotton and some European OEMs.
They've teamed up with Greaves Cotton to co-manufacture at Aurangabad for things like three-wheelers and off-highway applications.
This partnership aims for big wins: up to 50% savings and cutting CO2 emissions by about a third.
Looking to grow revenue sixfold by FY26
The company is also focused on smarter powertrain controls and system efficiency across vehicles.
With nine patents filed and certifications from ARAI/ICAT under their belt, they're targeting sixfold revenue growth by FY2026—and hope to sell 40,000 motors annually by FY2027.