Mobility Solutions Firm Matel Aims for Growth with $4M Funding

Matel's solutions cater to EVs, including 2-wheelers, buses & off-road vehicles

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Pune-based mobility and energy solutions provider Matel has secured $4 million in Series A financing, spearheaded by Transition VC. Gruhas and Haresh Abichandani, founder of Millenium Semiconductors, also participated in the round.

Established in 2017, Matel specializes in producing synchronous machines and motor controllers for e-mobility, industrial usage, agricultural pumping, and the heating, ventilation, and air conditioning sector.

Focused on crafting high-efficiency electric motors and controllers, the company delivers a comprehensive powertrain solution to original equipment manufacturers (OEM) in the electric vehicle (EV) and industrial sectors.

The startup has developed various EV powertrains, encompassing motors, motor control units, vehicle control units, transmissions, and battery management systems.

Matel’s solutions cover a range of EVs, including 2-wheelers, 3-wheelers, 4-wheelers, buses, and off-road vehicles. The company commenced mass production of powertrains in April 2024 following validation and certification by several EV OEMs.

Mahesh Toraskar, Founder of Matel, said, “This fundraiser marks a pivotal moment in our journey, empowering us to further enhance the experience of our customers and partners while simultaneously advancing our vision for a sustainable future. 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 three years.”

The company has planned for product expansion across multiple segments. Soon, it will supply products for both traction and auxiliary applications in the commercial vehicle segment, focusing on the 350V segment with power capacities exceeding 100 KW.

Matel is gearing up to introduce products in the 600V range with power capacities surpassing 200 kW by the financial year 2026. Over the next two years, it also intends to enter the electric motors market required for defense applications.

Backed by a robust order book and concrete plans to expand its product portfolio, Matel aims to achieve annual sales exceeding ₹1 billion (~$12 million) by the following year.

Speaking on Transition VC’s investment in Matel, its co-founder and managing partner, Raiyaan Shingati, said, “We are confident in Matel founders’ capability to lead the company to success given their expertise and experience with industry giants like Bajaj, Ola, and Maruti Suzuki. With our successful investments in other startups in the EV segment, like EMO.energy, we’re keen on Matel’s focus on motors & motor controllers, crucial in the EV value chain.”

Nikhil Kamath, Co-founder of Gruhas, said, “Energy transition is the future. As the EV movement gains momentum across the country, Matel stands at a pivotal moment, uniquely positioned to power this shift with their advanced, sustainable electric drivetrains and motor controllers. We’re excited to be a part of their journey, contributing to the growth of home-grown brands that are delivering exceptional value and driving positive change in the mobility and energy sectors.”

Recently, automobile manufacturer Mahindra & Mahindra announced it plans to invest ₹120 billion (~$1.43 billion) in its EV unit, Mahindra Electric Automobile, over the next three years.

EV sales in India reached a record 486,669 units in the first quarter of 2024, a jump of over 40% year-over-year against the 347,676 units. Mahindra sold 1,982 electric four-wheelers during the quarter.

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