Chara Technologies raises Rs 52 crore to expand rare-earth-free motor manufacturing

Chara Technologies, a Bengaluru-based deep-tech startup, has raised ₹52 crore (around USD 6 million) in a Series A round led by Arkam Ventures, with participation from Exfinity Venture Partners, Kalaari Capital, and IIMA Ventures. Founded by Bhaktha Keshavachar, Mahalingam Koushik, and Ravi Prasad, the company focuses on designing and manufacturing next-generation electric motors and controllers that completely eliminate the use of rare-earth magnets. Its proprietary synchronous reluctance motor (SynRM) technology delivers performance comparable to permanent-magnet motors while significantly reducing costs and supply-chain dependence on rare-earth materials, a critical vulnerability in the global EV industry.

With this funding, Chara aims to expand its manufacturing and testing facilities in Bengaluru, increasing annual production capacity from approximately 20,000 units to 100,000 units. The company also plans to diversify its product portfolio, introducing high-speed, lightweight motors and larger-capacity variants catering to electric two-wheelers, three-wheelers, four-wheelers, off-highway vehicles, and industrial applications. Chara currently serves over 100 customers, including major OEMs such as Greaves Cotton, Sonalika Tractors, and VST Motors, and has a joint manufacturing partnership with Greaves Cotton in Aurangabad.

By eliminating rare-earth materials, Chara’s innovation supports India’s self-reliance and “Make in India” ambitions in advanced manufacturing while reducing environmental impact associated with rare-earth mining. Its cost-effective and scalable technology positions India as a credible player in the global sustainable mobility ecosystem, offering an indigenous solution to one of the most pressing supply chain and sustainability challenges in the electric motor industry.

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