Chara Technologies Raises $6.2 Mn to Scale Rare Earth-Free Motor Production

Bengaluru-based deeptech start-up, Chara Technologies, which manufactures rare earth free motors, has raised $6.2 million in Series A funding round led by Arkam Ventures, along with participation from Kalaari Capital, Exfinity, and IIMA Ventures.

The fresh capital is expected to increase Chara’s production capacity five-fold - from 20,000 to 100,000 units annually. The start-up will also launch new product lines, including lighter, higher-speed motors, larger-capacity variants, and industrial models.

“Deep-tech, autonomy in energy systems and manufacturing are key ingredients for a Viksit Bharat. The infusion of capital will help us scale our product deployments, strengthen our manufacturing capability and invest in future products,” said Bhaktha Keshavachar, founder & CEO, Chara Technologies.  

Founded by Bhaktha Keshavachar, Mahalingam Koushik, and Ravi Prasad in 2019, the platform addresses a critical challenge in electric mobility, as nearly all motors today rely on rare-earth magnets that make up around 40% of their cost.

This dependence is compounded by China’s dominance of the global supply chain, leading to price volatility and supply chain bottleneck. Beyond the economic vulnerability, rare-earth extraction is also environmentally hazardous, generating significant toxic waste.

Hence, Chara has built a synchronous reluctance architecture that eliminates magnets entirely, making its motors 15-20% more cost-effective and significantly more sustainable, while still matching the performance of PMSMs (Permanent magnet synchronous motors).

Its products deliver improved vehicle range, reduce energy losses, and lower total cost of ownership (TCO). These are key enablers for EV adoption in cost-sensitive and high-volume markets such as India.

Notaly, Chara is the first rare-earth-free motor and controller company to receive Indian government approval from both ARAI and ICAT, and its motor systems are in active deployment across multiple sectors and geographies, demonstrating proven performance and scalability.

The company is also targeting a six-fold top line growth, from FY 25 to FY 26, with a goal of selling 40,000 motors by FY27, supported by growing OEM adoption and new product introductions.

With footprints already in Belgium and Italy, Chara will now double down on its international expansion plan targeting North America and deeper presence in Europe.