Chara Technologies, a Bengaluru-based deep-tech startup developing rare-earth-free electric powertrain systems, has raised Rs 52 crore in Series A funding led by Arkam Ventures, with participation from Exfinity Venture Partners, Kalaari Capital, and IIMA Ventures.

The funds will support the establishment of a new factory and testing facility, scaling production from 20,000 to 1,00,000 units annually. Founded in 2019, Chara eliminates rare-earth magnets—commonly sourced from China, by using synchronous reluctance motor architecture, making its motors 15–20 percent more cost-effective and sustainable. Chara plans to expand its product portfolio with lighter, high-speed and industrial-grade motors, and aims for 6x revenue growth by FY26.

The company has close to 100 customers including Greaves Cotton, with whom it has a strategic manufacturing partnership. Chara’s motors are certified by ARAI and ICAT and deployed across multiple geographies.