Matel’s $4M Funding Round: What Does it Mean for the Future of EV Components?

Matel, a prominent manufacturer of electric vehicle (EV) components, has secured a funding round totaling $4 million. This investment drive was spearheaded by Transition Venture Capital, a renowned fund specializing in clean energy endeavors.

What Does Matel Specialize In?

Founded in 2017 by Sunil Patel, Mahesh Toraskar, and Netaji C. Patro, Matel is a leading provider of energy solutions and electric motors tailored for diverse applications such as e-mobility, industrial sectors, and agriculture.

Matel’s innovative products play a crucial role in electric vehicles (EVs), ranging from two-wheelers to buses and off-road vehicles.

Raiyaan Shingati, co-founder and managing partner at Transition VC, emphasized Matel’s comprehensive approach to motor and controller technology as a significant investment allure. Shingati stated, “Matel’s integrated product approach, combining controllers and motors, unlock significant efficiencies, aligning perfectly with our investment strategy.”

In addition to Transition VC, participants in the Series A funding round included Gruhas, supported by Nikhil Kamath, and Haresh Abichandani, founder of Millenium Semiconductor.

What’s the Goal of Fundraising?

The objective behind the fundraising initiative is to fortify Matel’s research and development (R&D) team.

Netaji C. Patro, Mattel’s co-founder, revealed the company’s strategy to double the R&D workforce from its existing 60 employees. Additionally, they aim to substantially increase manufacturing capacity, scaling up from 5,000 units monthly to 20,000 units by fiscal year 2026.

Exploring New Segments and Technological Advancements

Matel, alongside bolstering its workforce and production capacities, is delving into fresh segments and technological frontiers. This strategic move involves venturing into high-power electric motor solutions catering to commercial vehicles and the defense sector.

Patro underscored the company’s keen interest in the EV market for future expansion, forecasting, “While our irrigation and industrial ventures will maintain their growth trajectory, we anticipate the majority of our exponential growth in the upcoming years to stem from the EV segment.”