Haryana-based electric vehicle startup Zelio E-Mobility Ltd. has closed its SME IPO with strong investor interest, fully subscribing at 1.46 times on the final day, paving the way for ambitious expansion in the e-three-wheeler segment under its Tanga brand.
auto.economictimes.indiatimes.com The bootstrapped company anticipates three-wheelers contributing 30–40% of revenue in the next couple of years, supported by a new manufacturing unit set to commence operations by April 2026.Led by promoters Niraj Arya, Deepak Arya, and Kunal Arya, Zelio operates as a fully bootstrapped entity, focusing on affordable electric mobility solutions for India’s burgeoning EV market. With the IPO proceeds earmarked for plant setup, debt repayment, and R&D, the company is positioning itself to diversify beyond its core two-wheeler lineup
Zelio’s Current Operations: Steady Growth in Low-Speed EVs
Zelio’s flagship Hisar plant in Haryana boasts an annual capacity of 72,000 electric two-wheelers in a single shift. As of March 31, 2025, the facility was running at about 52% utilization. Shubham Garg, Chief Financial Officer, noted, “As utilisation increases, we may add shifts to optimise output and meet market demand.”The company specializes in low-speed electric two-wheelers under the Zelio brand, catering primarily to students, elderly users, and short-distance commuters. Its robust distribution network spans over 300 dealer outlets across India, ensuring wide accessibility in tier-2 and tier-3 markets where demand for economical EVs is surging.Despite not yet qualifying for incentives under the Production-Linked Incentive (PLI) scheme, Zelio is ramping up component localization. Garg explained, “This gradual increase in localisation could position us to benefit from future policy support or related EV initiatives.”
Strategic Expansion: New Unit for Three-Wheelers and Risk Mitigation
Zelio’s expansion strategy hinges on a new dedicated manufacturing unit for its upcoming e-three-wheeler lineup under the Tanga brand. Around Rs 20 crore from the IPO will fund this facility, with an additional Rs 19–20 crore allocated for debt repayment, working capital, and R&D.Addressing the timing amid moderate plant utilization, Garg emphasized the forward-thinking approach: “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.”This move aligns with India’s push towards sustainable last-mile mobility, where e-three-wheelers are gaining traction for cargo and passenger applications. The new plant is slated to start operations by April 2026, bolstering Zelio’s capacity to capture a larger share of the growing segment.
Strong Financial Track Record Fuels Investor ConfidenceZelio’s financials underscore its rapid ascent in the competitive EV space. In FY2025, the company clocked revenue of Rs 172 crore, EBITDA of Rs 21 crore, and profit after tax (PAT) of Rs 16 crore, translating to a healthy PAT margin of 9.29%. Its net worth stood at Rs 26.67 crore.The past two years highlight impressive growth from a modest base: a revenue CAGR of 83% and PAT CAGR of 128% between FY2023 and FY2025.
| Financial Metric | FY2025 Value | CAGR (FY2023–2025) |
|---|---|---|
| Revenue | Rs 172 Cr | 83% |
| EBITDA | Rs 21 Cr | – |
| PAT | Rs 16 Cr | 128% |
| PAT Margin | 9.29% | – |
| Net Worth | Rs 26.67 Cr | – |
This profitability, rare among early-stage EV startups, likely contributed to the IPO’s positive reception.
SME IPO: A Milestone for Funding and Visibility
Approved by the Securities and Exchange Board of India (SEBI), Zelio’s SME IPO aimed to raise Rs 78 crore through a fresh issue of 46.2 lakh equity shares and an offer for sale of 11.4 lakh shares. Priced at Rs 129–136 per share, the issue opened on September 30, 2025, and closed on October 3, 2025, listing on the Bombay Stock Exchange (BSE) on October 8, 2025.
moneycontrol.comManaged by Hem Securities Ltd., the IPO saw Qualified Institutional Buyers subscribe 1.61 times and Retail Individual Investors at 1.32 times, culminating in overall bids of 1.46 times. moneycontrol.com +1 Garg highlighted the funds’ strategic deployment: “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.
”Future Outlook: More Plants and Broader EV Ambitions
Looking ahead, Zelio may explore setting up additional plants in southern and eastern India to tap regional demand and further de-risk operations. With three-wheelers poised to drive significant revenue growth, the company is betting on a multi-product portfolio to navigate the evolving EV landscape.As Garg put it, the focus is unyielding: “Our immediate focus is on the plant.” In a market projected to see EV adoption soar, Zelio’s disciplined, bootstrapped approach—now supercharged by public markets—positions it as a nimble player ready to electrify India’s roads. Investors and commuters alike will watch closely as this Hisar powerhouse shifts gears.
