EV Components Maker Matel Bags $4 Mn From Transition VC, Others

Matel, a startup which makes components like power trains and motor control units for electric vehicles, has raised $4 Mn (INR 33.3 Cr) in a Series A funding round led by Transition VC, with participation from Nikhil Kamath-backed Gruhas and Millenium Semiconductor’s founder Haresh Abichandani. 

“We plan to allocate the raised capital for scaling up production, new product development, and expanding our R&D team and required equipment over the next 3-years,” said Mahesh Toraskar, founder, Matel.

Besides, the startup is planning product expansion across various segments. Later this year, it aims to start supplying products for traction and auxiliary applications in the commercial vehicle (CV) segment, specifically in the 350V segment and up to 100+ KW power. Matel also plans to start delivering products in the 600V and 200+ KW power range in FY26, which are currently under the design phase.

Over the next two years, Matel aims to foray into electric motors for the defence sector. With these expansion plans, the company is targeting to exceed INR 100 Cr in annual sales by next year.

Transition VC’s cofounder & managing partner, Raiyaan Shingati said, “With our successful investments in other startups in the EV segment, like EMO.energy, we are keen on Matel’s focus on motors & motor controllers, crucial in the EV value chain.”

Nikhil Kamath, cofounder, Gruhas said, “We are excited to be a part of their journey, contributing to the growth of homegrown brands that are delivering exceptional value and driving positive change in the mobility and energy sectors.”

Founded by Toraskar, Sunil Patel and Netaji C Patro in 2017, Matel manufactures synchronous machines and motor controllers for e-mobility, industrial applications, agricultural pumping, and the HVAC sector. The startup claims to specialise in designing and manufacturing high-efficiency electric motors and controllers. 

It offers applications in all kinds of EVs including 2-wheelers, 3-wheelers, 4 wheelers, buses and off-road vehicles. It started the mass production of powertrains in April ‘24 after receiving successful validation and certification by various EV OEMs.

Last month, Ather Energy, an electric two-wheeler manufacturer, was reportedly in the final stages of securing $75-$90 Mn (approximately INR 750 crore) in primary funding from its existing investors.

The Indian EV market houses various small as well as large EV startups and is estimated to reach $110.74 Bn by 2029.