Bengaluru-based Chara Technologies has secured $6.2 million in funding led by Arkam Ventures, marking a crucial milestone for India’s deeptech ecosystem. The company designs and manufactures rare-earth-free electric motors, positioning itself as a global challenger in sustainable hardware innovation. Existing investors — Exfinity Venture Partners, Kalaari Capital, and IIMA Ventures — also participated in the round, reinforcing their confidence in Chara’s long-term vision.
Building a Rare-Earth-Free Future
Chara Technologies aims to revolutionize the electric mobility and energy equipment industries by eliminating rare-earth materials from motor manufacturing. Most electric motors today rely on neodymium and dysprosium, rare-earth elements that China dominates in mining and refining. These materials create major supply chain vulnerabilities and environmental hazards.
Chara’s engineers tackled this dependency by developing advanced magnet-free motor topologies using ferrite-based and wound-field technologies. The company’s proprietary Motor Operating System (MOS) integrates control algorithms, power electronics, and hardware design to optimize performance. This system enables Chara to produce efficient, compact, and cost-effective motors without rare-earth magnets.
Founder and CEO Kaushik Madhavan stated that the company wants to make India “the world’s manufacturing hub for sustainable motors.” He emphasized that Chara’s approach combines electromagnetic design innovation, digital simulation, and AI-driven optimization to produce motors that match or exceed magnet-based systems in torque density and efficiency.
The Growing Demand for Sustainable Motors
The global shift toward electrification of transport and industry has intensified demand for efficient motors. Every electric vehicle (EV), appliance, and industrial robot depends on motors that consume large portions of the total energy used. According to the International Energy Agency (IEA), electric motors account for over 45% of global electricity consumption. Improving their efficiency directly impacts climate goals and energy costs.
However, reliance on rare-earth materials complicates scaling. Prices for neodymium magnets fluctuate dramatically, and geopolitical tensions often disrupt supply. Moreover, mining and refining rare-earth elements release toxic waste and cause severe ecological damage. Chara’s technology eliminates these issues, allowing OEMs and manufacturers to decarbonize without depending on unstable resource chains.
How Chara’s Technology Works
Chara Technologies developed a platform architecture that supports multiple motor types — including Synchronous Reluctance Motors (SynRMs), Switched Reluctance Motors (SRMs), and Wound Field Synchronous Motors (WFSMs). Engineers can configure each model through Chara’s digital design suite, which runs AI-driven performance simulations to fine-tune magnetic flux paths, rotor geometries, and winding patterns.
This approach drastically reduces prototyping time. Instead of taking months to iterate, engineers can create optimized designs within days. Chara’s software integrates directly with industrial-grade embedded controllers and inverters, giving manufacturers an end-to-end solution. The company’s MOS also supports over-the-air updates, predictive maintenance, and adaptive torque control.
By combining hardware and software, Chara transforms the motor from a static component into an intelligent system. The company builds each motor around principles of efficiency, modularity, and manufacturability. Its designs require fewer imported materials, less machining, and lower assembly complexity, allowing domestic suppliers to scale production easily.
Market Focus and Product Portfolio
Chara Technologies currently focuses on three high-growth segments:
- Electric two-wheelers and three-wheelers – India’s EV market in this segment is booming, driven by policy incentives and cost-sensitive consumers. Chara’s compact, efficient SRMs fit perfectly for scooters and delivery vehicles.
- Commercial vehicles and off-highway equipment – The company’s WFSMs provide high torque and reliability for buses, trucks, and construction machinery.
- Industrial automation and HVAC systems – Chara supplies motors for industrial fans, compressors, and robotics applications, where durability and maintenance efficiency matter more than aesthetics.
By diversifying across sectors, Chara reduces dependency on any single industry and strengthens its market resilience.
The Funding Round: A Strategic Inflection Point
The $6.2 million round led by Arkam Ventures will enable Chara to expand production capacity, strengthen R&D, and accelerate global partnerships. Co-founder and CTO Praveen R noted that the team plans to scale its manufacturing capabilities in Bengaluru and expand its workforce across engineering, embedded systems, and software development.
Arkam Ventures Partner Ranjith Menon said that Chara exemplifies the kind of deep-tech innovation India needs. He highlighted that “India imports most of its motor components today. Chara’s technology can localize production and make India self-reliant in advanced hardware manufacturing.”
The new capital will also help Chara enter export markets. The company has begun pilot projects with global automotive OEMs and aims to establish partnerships across Europe and Southeast Asia by 2026.
Collaborations and Ecosystem Impact
Chara Technologies collaborates with leading research institutions and manufacturing partners to accelerate product validation. The company works closely with IIT-Madras and IISc Bengaluru, tapping into India’s deep expertise in electrical machine design and power electronics.
In addition, Chara maintains partnerships with component suppliers in Pune and Coimbatore for rotor and stator assembly, creating a local supply chain network that supports India’s Make in India mission.
By developing homegrown intellectual property, Chara contributes to India’s strategic autonomy in critical technologies. It helps the nation reduce dependence on imported rare-earth materials while stimulating employment in high-value manufacturing.
The Team Behind the Innovation
Chara’s leadership combines experience in hardware design, embedded systems, and AI.
- Kaushik Madhavan, CEO, has spent over 20 years in motor development and led product strategy at Ashok Leyland before founding Chara.
- Praveen R, CTO, brings expertise in electromagnetic simulation and powertrain architecture.
- The core team includes engineers from IITs and NITs who have worked in companies such as Bosch, Siemens, and Mahindra Electric.
Together, they have built a multidisciplinary engineering culture where mechanical, electrical, and software experts collaborate seamlessly.
The Global Significance of Rare-Earth-Free Motors
Globally, the race to reduce rare-earth dependence is heating up. The EU and the US have both introduced Critical Minerals Acts to secure supply chains and encourage alternative technologies. Japanese and European automakers already test reluctance-based motors to reduce reliance on Chinese magnets.
Chara’s innovation directly aligns with this shift. By building high-performance, scalable, and cost-competitive motors domestically, India can participate as a technology exporter instead of merely a parts supplier.
Analysts estimate that the rare-earth-free motor market could exceed $25 billion by 2030, driven by EV demand, clean-energy mandates, and industrial automation. Chara stands well-positioned to capture early market share due to its integrated design-manufacturing approach and strong investor backing.
Road Ahead: Scaling for Global Impact
Chara Technologies plans to deploy the new funding in several directions:
- Scaling production from prototype to commercial volumes, targeting 100,000 motors annually by mid-2026.
- Expanding the product portfolio to include high-voltage motors for heavy-duty EVs and low-power motors for consumer appliances.
- Strengthening digital capabilities, including AI-based predictive maintenance modules in its MOS software.
- Building global partnerships to co-develop next-generation traction motors and controllers.
The company also intends to invest in testing infrastructure to meet international certification standards such as ISO 26262 (functional safety) and IEC 60034 (rotating machines). These certifications will help Chara access global markets more efficiently.
Conclusion
Chara Technologies demonstrates how deep-tech innovation can reshape manufacturing, sustainability, and national self-reliance. The startup’s rare-earth-free motors not only challenge decades-old assumptions about electric drive systems but also align with the world’s push toward cleaner, circular economies.
By raising $6.2 million and securing trust from high-caliber investors, Chara has stepped into a decisive growth phase. It now holds the potential to turn India into a global leader in sustainable motor technology — where science, engineering, and environmental responsibility converge.
As Madhavan aptly summarized during the funding announcement:
“We are not just building motors. We are building independence — for India, for the planet, and for the next generation of engineers.”
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