EV Parts Maker Matel Raises $4M

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Matel manufactures components such as power trains and motor control units for electric vehicles. In this funding round, investors included Gruhas, backed by Nikhil Kamath, and Haresh Abichandani, the founder of the electronic components firm Millenium Semiconductor.

Matel, a company that manufactures components such as power trains and motor control units for electric vehicles (EVs) among other products, has successfully raised USD 4 million in a funding round. This round was led by Transition Venture Capital, a venture fund focused on clean energy.

Additional investors included Gruhas, backed by Nikhil Kamath, and Haresh Abichandani, founder of the electronic components firm Millenium Semiconductor. This marks the first instance of Matel securing institutional funding since its founding in 2017, according to cofounder Netaji C Patro. Raiyaan Shingati, co-founder and managing partner at Transition VC, expressed enthusiasm for Matel’s emphasis on motors and motor controllers, which are vital to the EV value chain. Shingati highlighted that Matel’s integrated approach, which combines controllers and motors, achieves significant efficiencies, making it an ideal match for their investment strategy.

The newly raised funds will be used to expand Matel’s team, currently comprising 60 people, with a focus on doubling the research and development (R&D) team. Patro also mentioned plans to increase manufacturing capacity from the present 5,000 units per month to 20,000 units per month by FY26.

In addition to EV components, Matel produces machines for irrigation and industrial applications. The company designs and manufactures power trains, which include the engine, transmission, and driveshaft, as well as motor control units, which interface between the batteries and the motor. Matel is also developing a battery management system.

Patro explained that much of the cost of ownership in EVs is related to energy consumption issues, and the majority of Matel’s R&D is focused on enhancing engine performance and efficiency across various load conditions to address this. While the company currently concentrates on three-wheeler EVs, it also produces components for two-wheeler and four-wheeler EVs.

In FY24, Matel generated over INR 30 crore in revenue and has been profitable at the profit after tax (PAT) level since 2019. The firm aims to exceed INR 100 crore in revenue by FY26. Patro anticipates that while the irrigation and industrial segments will continue to grow steadily, the EV segment will drive most of the exponential growth in the coming years.

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