Zelio E-Mobility to Expand into Electric Three-Wheelers Under Tanga Brand

Key Highlights

• Tanga brand to lead three-wheeler expansion

• New unit to start operations by April 2026

• Hisar plant capacity at 72,000 e-two-wheelers

• IPO to raise Rs 78 crore for growth

• Dealer network crosses 300 outlets nationwide

Haryana-based electric vehicle startup Zelio E-Mobility Ltd. has announced its plans to expand into the electric three-wheeler market under the Tanga brand. The company expects three-wheelers to contribute 30–40% of its revenue in the coming years, with a new dedicated manufacturing unit set to begin operations by April 2026.

Current Operations and Capacity

Zelio, a fully bootstrapped startup led by Niraj Arya, Deepak Arya, and Kunal Arya, currently runs its manufacturing facility in Hisar, Haryana. This plant has the capacity to produce 72,000 electric two-wheelers annually in a single shift. As of March 31, 2025, the plant was operating at 52% utilisation, but the company plans to add extra shifts as demand grows.

The startup manufactures low-speed electric two-wheelers under the Zelio brand, mainly catering to students, elderly riders, and short-distance commuters. To strengthen sales, the company has built a dealer network of over 300 outlets across India.

Investment Plans and New Unit

According to Shubham Garg, Chief Financial Officer, Zelio will allocate Rs 20 crore for the new unit and another Rs 19–20 crore for debt repayment, working capital, and R&D purposes.

When asked about expansion despite underutilisation at the Hisar plant, Garg explained:

“The new facility is a strategic move. 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.”

Financial Growth and Performance

Zelio has shown strong growth in recent years. In FY 2025, the company reported:

• Revenue: Rs 172 crore

• EBITDA: Rs 21 crore

• Profit After Tax (PAT): Rs 16 crore

• Margin: 9.29%

• Net Worth: Rs 26.67 crore

Between FY 2023 and FY 2025, Zelio achieved a revenue CAGR of 83% and a PAT CAGR of 128%, showcasing rapid growth from a small base.

IPO Plans to Fund Expansion

To fund expansion and manage its financial needs, Zelio is launching an SME IPO approved by the Securities and Exchange Board of India (SEBI).

• IPO Size: Rs 78 crore

• Manager: Hem Securities Ltd.

• Exchange: Bombay Stock Exchange (BSE)

• Subscription Window: September 30 – October 3, 2025

• Price Band: Rs 129–136 per share

• Shares: 46.2 lakh fresh equity shares + 11.4 lakh offer-for-sale shares

Garg stressed that while IPO funds will support expansion, the immediate priority is operational execution, working capital, and R&D to improve designs and technology.

Future Outlook

Currently, Zelio does not receive incentives under the Production-Linked Incentive (PLI) scheme, but it is gradually localising components, which may help it benefit from future EV policies.

Looking ahead, Zelio plans to expand further by setting up new plants in southern and eastern India to reduce logistics costs. However, the immediate focus remains on the upcoming Tanga three-wheeler facility.

Also Read: Tata Motors Names Shailesh Chandra as MD & CEO Amid Major Restructuring; P B Balaji to Lead JLR

CMV360 Says

Zelio E-Mobility is gearing up for strong growth by diversifying into electric three-wheelers under the Tanga brand. With steady financial performance, IPO funding, and a strategic plant expansion, the company is positioning itself to capture a bigger share of India’s EV market while focusing on R&D, working capital, and regional expansion to reduce operational risks.