Matel Motion & Energy Solutions, a Pune-based manufacturer of electric motors and controllers, has raised ₹130 Cr ($13.6 Mn) in a Series B round led by early-growth VC fund UC Impower. Catamaran and existing investor Transition VC also participated. The company will use the capital to expand manufacturing, accelerate R&D, and push into the commercial EV segment.
Founded in 2017 by Netai Patro, Sunil Patel, and Mahesh Toraskar, Matel produces synchronous machines and motor controllers for e-mobility, industrial applications, agricultural pumping, and HVAC systems. The company says it has already entered series production with multiple OEMs across two-wheelers, three-wheelers, and industrial applications.
Where the money goes
Cofounder Sunil Patel said the primary focus will be "accelerating our product roadmap with advanced R&D infrastructure and expanding state-of-the-art manufacturing set-up." The startup also plans to scale hiring across engineering and production functions.
Notably, Matel is eyeing the electric commercial vehicles segment, a market where heavier payloads demand more sophisticated motor technology. Cofounder Netai Patro said the capital will also support international expansion to acquire new customers worldwide.
The EV components race in India
Matel competes with Virya Mobility, Electra EV, and Vecmocon Technologies in the domestic EV components space. The broader market has drawn consistent investor interest as OEMs prioritize localization to cut costs and reduce supply chain risk.
In June 2026, Simple Energy closed ₹250 Cr in mixed debt and equity to scale manufacturing. That same month, rapid-charging startup Exponent Energy raised ₹200 Cr for R&D. Both rounds signal that capital continues to flow into the EV infrastructure stack, not just finished vehicles.
Another EV infrastructure player preparing a major capital raise
Prior backing and valuation
Matel raised $4 Mn in its Series A round in 2024, led by Transition VC. Other backers include Nikhil Kamath-backed Gruhas and Haresh Abichandani, founder of Millennium Semiconductor. The company has not disclosed its current valuation.
Logicity's Take
The real test for Matel is whether its motors can hold up in commercial EVs, where duty cycles are brutal and OEM partnerships take years to close. If it can replicate its two-wheeler and three-wheeler traction in the CV segment, it becomes a serious supply-chain anchor for Indian EV OEMs trying to localize. Watch for OEM announcements over the next 12 months as proof the R&D spend is landing.
What this means for EV supply chains
India's EV industry still imports a significant share of its motor and controller components. Domestic suppliers like Matel reduce that dependency, giving OEMs shorter lead times and insulation from currency swings or geopolitical disruption. The government's PLI scheme for auto components has further incentivized this shift.
Whether Matel can convert its expanded capacity into durable OEM contracts remains the open question. Series production with existing customers is a start, but commercial vehicles and international markets require different certifications, longer sales cycles, and deeper balance sheets.
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Source: Inc42 Media / Anne Florentyna
Huma Shazia
Senior AI & Tech Writer
Produced with AI assistance and reviewed by the Logicity editorial team. Learn more in our Editorial Policy.
