The company expects three-wheelers to make up 30–40% of revenue. Its Hisar plant produces 72,000 e-two-wheelers annually, expandable with extra shifts.
29 Sep 2025 | 9527 Views | By Yukta Mudgal
Haryana-based electric vehicle startup Zelio E-Mobility Ltd. is working on expanding its e-three-wheeler business under the Tanga brand, with a new manufacturing unit expected to start operations by April 2026. The company anticipates that three-wheelers could contribute around 30–40% of revenue in the next couple of years.
Zelio is ...
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Haryana-based electric vehicle startup Zelio E-Mobility Ltd. is working on expanding its e-three-wheeler business under the Tanga brand, with a new manufacturing unit expected to start operations by April 2026. The company anticipates that three-wheelers could contribute around 30–40% of revenue in the next couple of years.
Zelio is a fully bootstrapped startup led by promoters Niraj Arya, Deepak Arya, and Kunal Arya. It currently operates a Hisar plant with an annual capacity of 72,000 electric two-wheelers in a single shift. As of 31 March 2025, the facility operated at about 52% capacity. Garg said, “As utilisation increases, we may add shifts to optimise output and meet market demand.”
The company produces low-speed electric two-wheelers under the Zelio brand, mainly targeting students, elderly users, and short-distance commuters. It has built a dealer network of over 300 outlets.
Shubham Garg, Chief Financial Officer, said, “Around Rs 20 crore will be allocated for the new unit, and another Rs 19–20 crore for debt repayment, working capital, and other purposes such as R&D. Our immediate focus is on the plant.”
Asked why a new unit is being set up despite moderate utilisation, Garg said the expansion is a strategic move. “The new facility is expected to support diversification. Our upcoming three-wheeler line will likely need a dedicated unit. Operating multiple plants could reduce reliance on a single location and help manage operational risks,” he said.
Currently, Zelio does not receive incentives under the Production-Linked Incentive scheme. Garg said the company is gradually increasing localisation of components, which could position it to benefit from future policy support or related EV initiatives.
In financial year 2025, Zelio reported revenue of Rs 172 crore, EBITDA of Rs 21 crore, and profit after tax of Rs 16 crore, giving a margin of 9.29%, with a net worth of Rs 26.67 crore. Between financial years 2023 and 2025, it recorded a revenue CAGR of 83% and PAT CAGR of 128%, reflecting growth from a small base.
The company plans to fund its expansion, debt repayment, and working capital needs through an SME IPO approved by the Securities and Exchange Board of India. The IPO will raise Rs 78 crore via a listing on the Bombay Stock Exchange and is managed by Hem Securities Ltd. It opens for subscription on September 30, 2025, and closes on October 3, 2025. The issue comprises 46.2 lakh fresh equity shares and 11.4 lakh shares offered for sale, with a price band of Rs 129–136 per share.
Garg noted that IPO funds are intended to support expansion, but operational execution remains the priority. “Working capital is the main requirement in this sector. We will also focus on R&D to improve technology and designs,” he added.
Looking ahead, Zelio may consider setting up additional plants in southern and eastern India to reduce logistics costs, though the immediate priority is the Tanga three-wheeler facility.