Matel, a homegrown mobility and energy solutions company, has secured $4 million in a Series A funding round led by Transition VC. The round also included investments from Gruhas and Haresh Abichandani, the founder of Millenium Semiconductor. Steer Advisors served as the exclusive transaction advisor for this funding round.
Founded in 2017, Matel manufactures synchronous machines and motor controllers for e-mobility, industrial applications, agricultural pumping, and the HVAC sector. Specializing in the design and production of high-efficiency electric motors and controllers, Matel provides a comprehensive powertrain solution for EV OEMs and the industrial sector.
Founded with a vision to create ultra-efficient, innovation-driven electric drivetrains for sustainability, Matel is led by Mahesh Toraskar, Sunil Patel, and Netaji C. Patro, who collectively have over 75 years of experience in the automotive and engineering software industry. Under their dynamic leadership, the company has developed a wide range of powertrains for electric vehicles, including motors, motor control units, vehicle control units, transmissions, and battery management systems. Matel’s solutions cater to all types of EVs, including 2-wheelers, 3-wheelers, 4-wheelers, buses, and off-road vehicles. The company began mass production of powertrains in April 2024,following successful validation and certification by various EV OEMs.
Matel’s machines have demonstrated high energy efficiency, excellent performance, and reliability, establishing the company’s credibility in the market. Thanks to this track record and its collaborative approach with OEMs as an extended R&D team, Matel has secured business from several leading OEMs across various segments.
Matel has ambitious product expansion plans across various segments. Later this year, the company will begin supplying traction and auxiliary products for the commercial vehicle (CV) segment, targeting the 350V range and up to 100+ KW power. Additionally, in FY26, Matel will start delivering products in the 600V and 200+ KW power range, which are currently in the design phase. Over the next two years, Matel also plans to venture into electric motors for the defense sector. With a robust order book and firm expansion plans, Matel aims to surpass Rs 100 crore in annual sales by next year.
Speaking on about the investment, Transition’s Co-founder & 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. Matel’s integrated product approach, combining controllers and motors, unlock significant efficiencies, aligning perfectly with our investment strategy.”
Other Co-founder & Managing Partner Mohammed Shoeb Ali added, “Electric motor-driven systems consume approximately 45% of the global electricity, which is roughly around 7100 TWh/year and is expected to reach 13,000 TWh/year by 2030. The efficiency of motors has to increase drastically to achieve net zero and industrial decarbonisation goals. Matel’s expertise lies in developing, designing, and manufacturing motors & controllers specifically for the unique demands of Mobility & Industrial Applications. The continuous focus on R&D, scalable hardware & software platforms has helped them build higher-voltage and efficient power systems. Matel’s fully integrated powertrain offers better performance, is also easy to manufacture, and has lower costs, enabling it to command higher margins than the competition.”
Nikhil Kamath, Co-founder, 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.”
Mahesh Toraskar, Founder, Matel said, “At Matel, we believe in more than just creating products; we are committed to fostering meaningful connections, driving positive change, and delivering exceptional value to all our stakeholders. This fundraise 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 3-years.”
