Chara Technologies, a deep-tech powertrain solutions company that develops rare-earth-free motors and controllers, has raised Rs52 crore (roughly $6 million) in a Series A funding round led by Arkam Ventures, with participation from Exfinity Venture Partners, Kalaari Capital, and IIMA Ventures.

Key Highlights

• Chara Technologies raises ₹52 crore (~$6 million) in Series A led by Arkam Ventures to scale magnet-free motor production. 
• Funds will support expansion of Bengaluru manufacturing facility fivefold and development of new motor lines and control systems.

Exfinity Venture Partners led the Bengaluru-based company's prior $4.75 million pre-Serie A funding round.

According to a news release from Chara Technologies, the money will be used to build a new factory in Bengaluru, introduce sophisticated motor variations, and improve the company's powertrain and internal technological capabilities.

Chara Technologies was co-founded in 2019 by Bhaktha Keshavachar, Mahalingam Koushik, and Ravi Prasad. The company focuses on developing rare-earth-free electric motors and controllers for a range of uses, such as industrial applications, agricultural equipment, and both on- and off-highway electric vehicles.

Chara Technologies claims to have developed a synchronous reluctance architecture that completely does away with magnets, making its motors 15-20% more affordable and considerably more environmentally friendly while maintaining performance comparable to PMSMs (Permanent Magnet Synchronous Motors). Its products lower total cost of ownership (TCO), increase vehicle range, and minimize energy losses.

Chara's end-to-end powertrain system is built on its proprietary software, power electronics architecture, and motor control algorithms, which provide exceptional system efficiency and scalability across applications.

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The company has nearly 100 clients, including European OEMs, Greaves Cotton, BullWork, Sonalika, and VST. In order to jointly manufacture rare-earth-free synchronous reluctance motors and controllers at Greaves, Chara and Greaves Cotton have formed a strategic partnership.

Chara intends to focus on North America and establish a stronger presence in Europe, having already established footprints in Belgium and Italy. In addition, the company wants to increase its top line by six times between FY25 and FY26, with a target of selling 40,000 motors by FY27.