EV mobility is gaining strong momentum in India with rising concerns around sustainability and climate change. As traditional automakers pivot towards electrification and new-age startups disrupt the market, the demand for high-quality and reliable EV components is also on the rise. Stepping up to address this need is Pune-based Matel, a leading manufacturer of electric powertrains and motor control units. In its latest development, Matel has raised $4 million in a Series A funding round led by Transition VC to further accelerate its growth journey.

Matel Bags

Founded in 2017 by Mahesh Toraskar, Matel has been at the forefront of developing indigenized solutions for electric motors, controllers and other core EV components. With a strong R&D focus and deep application engineering expertise, the company has succeeded in designing products that meet global quality and safety standards while keeping costs competitive for the Indian market. Matel supplies its powertrains and controllers to EV makers across 2-wheelers, 3-wheelers, commercial vehicles and various industrial applications. 

Commenting on the funding, Matel founder Mahesh Toraskar said, “We are thrilled to have the confidence of marquee investors as we continue to expand our product portfolio and scale up production. The funds will be primarily used to ramp up our manufacturing capabilities, develop new products catering to higher voltage and power segments, and expand our talented R&D team.”

Transition VC, which led the Series A round, is a specialist fund focused on investing in sustainable technology companies. Co-founder Raiyaan Shingati said they were excited to partner with Matel given its strategic importance in the EV supply chain. “With the EV adoption curve accelerating, localized component manufacturing will play a key role. Matel’s technology and execution strengths make it well-positioned to capture opportunities across vehicle segments,” he added. 

Matel plans to utilize the fresh capital to scale up its production capacity to meet the growing demand from OEMs. It aims to deliver over 1 lakh units of powertrains and controllers annually by 2025. The company will also expand its product portfolio to include higher voltage and power systems for commercial EVs, defense applications as well as introduce auxiliary motors for various industrial uses. On the R&D front, Matel will hire more engineers and scientists to accelerate new product development cycles.

The funding round also saw participation from Gruhas Proptech, an early-stage venture fund co-founded by Nikhil Kamath. Gruhas has been actively backing startups in the cleantech space that are enabling India’s transition towards renewable energy and sustainability. Matel’s focus on indigenizing core EV technologies aligned well with their investment thesis. 

Commenting on their investment, Nikhil Kamath said, “We are excited to partner with Mahesh and the Matel team who are building critical indigenous capabilities for the EV sector. Their high-performance yet affordable solutions have the potential to accelerate EV adoption in India. We look forward to supporting Matel’s growth with our expertise in the clean mobility domain.” 

For Matel, this funding marks an important milestone in its journey so far. Starting off by manufacturing motors and controllers for agricultural and industrial applications, the company has now emerged as a leading player in the fast-growing EV components segment. With marquee investors onboard, Matel is well-capitalized to aggressively scale up while continuing to innovate and bring best-in-class products to the market. Their success also shines a spotlight on the thriving EV startup ecosystem in India and the emergence of local champions building core technologies.

As Matel works towards capturing a larger share of India’s EV market, it will play a pivotal role in strengthening domestic manufacturing capabilities. This is instrumental for the country to achieve its ambitious EV goals sustainably and indigenously over the next decade. With the tailwinds of policy push and rising demand, Matel is well-positioned for exponential growth and support India’s transition to clean mobility.