Chara Technologies Raises ₹52 Cr in Series A to Scale Rare-Earth-Free Motor Manufacturing
Bengaluru-based deeptech startup Chara Technologies has raised ₹52 crore (approximately $5.8 million) in its Series A funding round, led by Arkam Ventures. The round also saw participation from IIMA Ventures, along with existing investors Exfinity Venture Partners and Kalaari Capital.
Founded in 2019, Chara is pioneering the development of rare-earth-free electric motors and controllers—offering a sustainable and cost-effective alternative to conventional rare-earth-based motors used in electric vehicles (EVs) and industrial applications.
Factory Expansion to Boost Production Capacity
With the newly secured funds, Chara Technologies plans to set up a new manufacturing facility in Bengaluru. This factory will focus on scaling up production of its innovative, rare-earth-free motors and supporting components, along with establishing a dedicated testing and validation center.
Currently operating at a capacity of 20,000 units per year, the startup aims to increase its annual production to 1 lakh units, addressing the growing demand for sustainable and efficient motor technologies in India and globally.
Product Innovation at the Core
Chara is also set to expand its product portfolio. The company revealed plans to launch:
- Lighter, high-speed motors for EVs and compact mobility solutions
- Higher-capacity motor variants to support heavier vehicles and equipment
- Industrial motor models for manufacturing and automation sectors
These upcoming product lines are expected to serve both domestic and international markets, further strengthening Chara’s position in the clean mobility and industrial electrification ecosystem.
Pioneering Rare-Earth-Free Alternatives
Traditional electric motors often rely on rare-earth materials such as neodymium and dysprosium, which are expensive and largely controlled by a few global suppliers. Chara Technologies is addressing this issue by building alternatives that eliminate the need for rare-earth elements, reducing both cost and environmental impact.
Their motors are based on Switched Reluctance Motor (SRM) and Induction Motor (IM) topologies, designed using advanced control algorithms and custom-built electronics. This not only brings down material dependency but also enhances motor efficiency and scalability.
Chara began shipping its commercial products in Q1 FY26, marking a key milestone in its transition from R&D to revenue generation.
Strong Leadership and Industry Backing
Chara was founded by a trio of experienced professionals: Bhaktha Keshavachar (former co-founder of Ezetap), Mahalingam Koushik, and Ravi Prasad. Their combined expertise in electronics, embedded systems, and power engineering has enabled Chara to emerge as a leading voice in India’s deeptech and EV innovation space.
The backing from top-tier investors like Arkam Ventures, Exfinity, and Kalaari Capital highlights the growing investor confidence in hardware-driven deeptech startups, a segment that has traditionally faced funding challenges in India.
Conclusion: Driving India’s Deeptech and EV Future
With this fresh round of funding, a clear vision for expansion, and growing demand for sustainable alternatives in mobility and industry, Chara Technologies is well-positioned to lead India’s transition to self-reliant, rare-earth-free electric motor solutions.
As the world moves towards greener energy and cleaner mobility, startups like Chara are playing a crucial role in shaping the future of India’s deeptech and EV manufacturing ecosystem.
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