Matel, a manufacturer of electric vehicle (EV) components, including motor control units and power trains, has successfully raised USD 4 million in a fundraising round. Transition startup Capital, a clean energy-focused startup fund, led this round.
Nikhil Kamath-backed Gruhas and Haresh Abichandani, the creator of Millenium Semiconductor, a company that manufactures electrical components, were among the other investors. According to cofounder Netaji C. Patro, this is the first time Matel has received institutional finance since the company’s creation in 2017. The managing partner at Transition VC and co-founder Raiyaan Shingati was excited about Matel’s focus on motors and motor controllers, which are essential to the EV value chain. Shingati emphasized that Matel generates notable efficiencies with its integrated approach, which mixes motors and controllers, which makes it a perfect fit for their investment strategy.
The recently raised money will be put toward growing Matel’s staff, which presently numbers sixty, particularly in the area of research and development (R&D), where two teams will be added. Additionally, Patro stated that by FY26, manufacturing capacity would rise from the current 5,000 units per month to 20,000 units per month.
Matel manufactures industrial and irrigation machinery in addition to EV components. The company creates and produces motor control units, which operate as an interface between the batteries and the motor, as well as power trains, which consist of the engine, transmission, and driveshaft. Additionally, Matel is working on a battery management system.
According to Patro, Matel’s R&D is primarily concentrated on improving engine performance and efficiency under a range of load conditions in order to solve the issue of energy consumption, which contributes significantly to the cost of ownership of EVs. Although the company’s present focus is on three-wheeler EVs, it also manufactures parts for two- and four-wheeler EVs.
Matel produced over INR 30 crore in sales in FY24 and has been profitable since 2019 at the profit after tax (PAT) level. By FY26, the company wants to have more than INR 100 crore in revenue. According to Patro, the EV segment will be primarily responsible for the exponential growth in the upcoming years, with the irrigation and industrial segments growing at a steady pace.
