EV Component Manufacturer Matel Secures $4M Funding Led by Transition Venture Capital

Key Points:

  1. Matel, an EV component manufacturer, secures $4 million in funding led by Transition Venture Capital, signaling increasing investor interest in clean energy initiatives.
  2. Founded in 2017, Matel specializes in energy solutions and electric motors for various applications, including e-mobility, industrial uses, and agriculture.
  3. The startup’s integrated approach to motor and controller technology attracts investors, with Transition VC highlighting its efficiency gains.
  4. Other participants in the Series A funding round include Gruhas, backed by Nikhil Kamath, and Haresh Abichandani, founder of Millenium Semiconductor.
  5. Matel plans to utilize the raised capital to double its R&D team and ramp up manufacturing capacity from 5,000 to 20,000 units per month by 2026.

Matel, a dynamic player in the electric vehicle (EV) component manufacturing sector, recently announced securing a significant $4 million in funding. Transition Venture Capital spearheaded this funding round, indicative of the growing investor interest in sustainable energy initiatives.

Founded in 2017 by Sunil Patel, Mahesh Toraskar, and Netaji C. Patro, Matel has emerged as a key contributor to the EV ecosystem. The company specializes in providing energy solutions and electric motors tailored for various applications, spanning e-mobility, industrial usage, and agriculture.

Matel’s products serve as vital components across a spectrum of EVs, ranging from nimble two-wheelers to robust buses and off-road vehicles. Raiyaan Shingati, co-founder and managing partner at Transition VC, underscored Matel’s innovative approach to motor and controller technology, citing it as a pivotal factor driving their investment decision. Shingati emphasized, “Matel’s integrated product approach, combining controllers and motors, unlock significant efficiencies, aligning perfectly with our investment strategy.”

Transition VC’s commitment to Matel was echoed by other notable participants in this Series A funding round, including Gruhas, backed by Nikhil Kamath, and Haresh Abichandani, founder of Millenium Semiconductor.

So, what does Matel intend to achieve with this substantial injection of funds? According to Netaji C. Patro, co-founder of Matel, the primary goal is to fortify the company’s research and development (R&D) endeavors. Patro outlined plans to double the current R&D team, which stands at 60 employees. Additionally, Matel aims to significantly scale up its manufacturing capacity from 5,000 units per month to an ambitious target of 20,000 units by the fiscal year 2026.

Beyond expanding its workforce and production capabilities, Matel is charting new territories in both segments and technological advancements. The company is venturing into high-power electric motor solutions tailored for commercial vehicles and even exploring opportunities within the defense sector.

Patro’s strategic vision underscores Matel’s bullish stance on the EV market’s potential for future growth. He remarked, “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.”

Matel’s trajectory epitomizes the burgeoning landscape of sustainable technology and underscores the pivotal role played by innovative startups in propelling the transition towards cleaner, greener transportation solutions. With Transition Venture Capital’s backing and a clear roadmap for expansion, Matel appears poised to make significant strides in shaping the future of electric mobility.