EV components maker Matel raises $4M in funding led by Transition Venture Capital

Matel, a manufacturer of components for electric vehicles (EV), recently raised $4 million in a funding round led by Transition Venture Capital, a fund that focuses on clean energy initiatives.

What does Matel do?

Established in 2017 by Sunil Patel, Mahesh Toraskar, and Netaji C. Patro, Matel specializes in energy solutions and electric motors for a range of applications, including e-mobility, industrial uses, and agriculture.

The startup's products are integral in EVs, spanning from two-wheelers to buses and off-road vehicles.

Raiyaan Shingati, co-founder and managing partner at Transition VC, highlighted Matel's integrated approach to motor and controller technology as a key investment attractor, stating, “Matel’s integrated product approach, combining controllers and motors, unlock significant efficiencies, aligning perfectly with our investment strategy.”

Alongside Transition VC, participants in this Series A funding included Gruhas, backed by Nikhil Kamath, and Haresh Abichandani, founder of Millenium Semiconductor.

What is the purpose of fundraising?

The startup plans to use the raised capital to bolster Matel’s research and development (R&D) team.

Netaji C. Patro, the co-founder of Mattel, outlined the firm's intentions to double the R&D staff within their current team of 60 employees. It plans to ramp up its manufacturing capacity significantly, from 5,000 units per month to 20,000 units by the fiscal year 2026.

Exploring new segments and technology frontiers

In addition to enhancing its workforce and production capabilities, Matel is exploring new segments and technology frontiers. This includes foraying into high-power electric motor solutions for commercial vehicles and the defence sector.

Patro emphasized the company’s focus on the EV market for future growth, predicting that “While the irrigation and industrial business will grow as usual, we see most of our exponential growth over the next few years come from the EV segment.”