Matel Motion & Energy Solutions, a Pune-based manufacturer of electric vehicle components, has successfully raised ₹130 crore in a Series B funding round. The investment was led by early-growth stage venture capital fund UC Impower, with significant participation from Catamaran and existing investor Transition VC. This new capital injection is earmarked for expanding manufacturing capabilities, advancing research and development, and accelerating product innovation for the cleantech startup.
Strategic Expansion and Product Development
The fresh capital will be strategically deployed to significantly expand the company's manufacturing capacity and advance its research and development infrastructure. Matel also plans to scale its hiring across key engineering and production functions to support this growth phase. This expansion is crucial for meeting the increasing demand from original equipment manufacturers (OEMs) and solidifying its market position.
According to co-founder Netai Patro, the funding will also enable the company to broaden its product range and facilitate its entry into the electric commercial vehicles segment. Furthermore, Matel aims to expand its international footprint by actively acquiring new customers worldwide. This global push is a core component of its strategy to diversify revenue streams and build a resilient business.
Technological Edge and Market Position
Founded in 2017, Matel specializes in designing and manufacturing high-efficiency synchronous machines and motor controllers for e-mobility and industrial applications. The company is among the first in India to offer PMSM-based IE5 ultra-high-efficiency industrial motors, with an even more advanced IE6 product currently under development. Its product portfolio serves diverse sectors, including agricultural pumping and HVAC systems.
The company has already entered series production with multiple OEMs across the two-wheeler, three-wheeler, and industrial segments since April 2024. A key area of its research includes the development of a magnet-free motor, which could reduce reliance on rare earth elements. This innovation holds the potential to create a more stable and geopolitically insulated supply chain for its products.
Investor Confidence and Business Outlook
This funding round follows a $4 million Series A investment in 2024, highlighting sustained investor confidence in Matel's vision and execution. The inclusion of Catamaran, a family office known for its long-term focus on Indian manufacturing, is a strong endorsement of the company's potential. The leadership team, which includes veterans from automotive giants like Bajaj Auto, brings deep industry expertise to the venture.
While the company's FY25 revenue of ₹50.6 crore was approximately half of its earlier projections, this new capital is intended to fuel capacity ahead of demonstrated demand. The business model focuses on securing design wins with vehicle manufacturers, a process that is expensive but creates strong, lasting partnerships. Matel's dual focus on the dynamic EV market and the stable industrial sector provides a balanced strategy for sustainable growth.
Ultimately, this Series B funding equips Matel Motion & Energy Solutions with the critical resources needed to scale its operations and enhance its technological leadership. The investment reflects a broader trend of strengthening India's domestic EV component supply chain. With a clear roadmap for innovation and market expansion, the company is well-positioned to capitalize on the growing demand for electric mobility solutions.