Kunal Arya of Zelio E-Mobility on Scaling Affordable EVs, Localisation, and Tier-2–Led Growth

StartupTalky presents Recap'25, a series of exclusive interviews where we connect with founders and industry leaders to reflect on their journey in 2025 and discuss their vision for the future.

In this edition of Recap’25, StartupTalky speaks with Kunal Arya, Co-founder and MD of Zelio E-Mobility, who reflects on a defining year marked by the company’s SME IPO, rapid network expansion, and deepening focus on India’s Tier 2 and Tier 3 EV markets. Arya shares how Zelio balanced the transition into a listed entity with strong operational performance, disciplined capital deployment, and a renewed emphasis on governance, localisation, and manufacturing capacity.

He goes on to discuss how evolving customer expectations are reshaping electric two-wheeler adoption—from experimentation to intent-driven daily use—and why reliability, service readiness, and battery intelligence are now central to product strategy. The conversation also explores the role of financing partnerships in accelerating adoption, Zelio’s long-term vision for slow-speed EV leadership, and how practical innovation and domestic manufacturing will drive the next phase of sustainable mobility growth in India.

StartupTalky:  How would you summarise Zelio E-Mobility's journey in 2025? What key milestones, product updates, or deployments made this year special?

Kunal Arya: 2025 has been a defining year for Zelio E-Mobility, marked by meaningful progress across financial, operational, and strategic fronts. A key milestone was our successful SME IPO and listing on the BSE SME platform, through which we raised INR 78.34 crore, including INR 62.83 crore via a fresh issue and INR 15.50 crore through an offer for sale. The IPO was subscribed 1.5 times, reflecting strong investor confidence, and strengthened our balance sheet while reinforcing our commitment to transparency, governance, and long-term value creation. Importantly, this transition to a listed company was accompanied by strong operating performance, with H1 FY26 revenues growing 77 percent year on year and profitability continuing to improve, underlining the resilience of our business model in a highly cost-sensitive EV market.

On the ground, we scaled with discipline. Our dealership network expanded to over 330 outlets across more than 20 states, deepening our presence in Tier 2 and Tier 3 markets where demand for practical, low-speed electric mobility is accelerating. We also refreshed and strengthened our core product portfolio to better align with evolving commuter needs, particularly in the non-RTO and mass-market segments. At the same time, we laid the foundation for future growth by investing in localisation and manufacturing capacity, including the incorporation of Zelio Auto Components Limited and the development of new production facilities.

StartupTalky:  What were the biggest challenges you faced in the EV and mobility sector this year, and how did your team navigate them?

Kunal Arya: Operating this year meant managing an EV market that is becoming more competitive and disciplined at the same time. Cost pressures from imported components, supply chain variability, and the need to maintain stable pricing required careful planning, especially after becoming a listed company where expectations around governance and execution are higher. Customer expectations have also evolved, with greater emphasis on reliability, service support, and real-world performance rather than just upfront cost. We addressed these challenges by focusing on localisation to reduce dependency risks, maintaining tight control over capital deployment post IPO, and prioritising operational stability. Incremental product improvements and continued strengthening of the dealer and service network helped us respond to market demands while sustaining consistent growth.

StartupTalky:  How has demand for electric two-wheelers / last-mile mobility changed in the past 12 months? Any shifts in adoption, customer segments, or use cases?

Kunal Arya: Over the past 12 months, demand for electric two wheelers and last mile mobility has become far more practical and usage driven. What we are seeing now is less experimentation and more intent, with customers buying EVs for everyday commuting, short distance travel, and local commercial use rather than as a secondary or trial vehicle. Adoption has expanded well beyond metros into Tier 2 and Tier 3 cities, where affordability, low running costs, and ease of use matter more than specifications on paper. Along with this shift, expectations around reliability and service have increased. Ownership experience is no longer just about the product but about how quickly issues are resolved and how dependable the support system is. In response, we have placed greater emphasis on dealer training, service readiness, and faster warranty resolution, because consistent after sales support has become central to sustained adoption rather than an add on.

StartupTalky: How is technology, especially battery intelligence, shaping your product roadmap?

Kunal Arya: Battery technology is at the heart of how we design our products, with a focus on intelligence, reliability, and safety. Most scooters reach a full charge in four to five hours, aligning with everyday commuting needs and minimizing downtime. This level of intelligence also helps maintain safety under different operating conditions while delivering predictable energy efficiency and a smooth riding experience. The approach allows us to address real-world usage requirements, making our products practical, dependable, and easy to own without adding unnecessary complexity.

StartupTalky:  What operational or manufacturing learnings helped you improve performance, cost efficiency, or reliability this year?

Kunal Arya: This year, our operational focus was on strengthening manufacturing discipline and expanding in-house capabilities to improve vehicle performance, reliability, and cost efficiency. Streamlining production processes and optimising resource utilisation allowed us to make better use of labour while maintaining consistent quality across units. We are actively planning further expansion to meet rising demand. On the operational side, broadening our dealer network to over 350+ locations across more than 20 states has not only improved market reach but also helped standardise service and support.

StartupTalky:  What partnerships, collaborations, or ecosystem developments played a key role in your company’s growth in 2025?

Kunal Arya: Working with suppliers to localize key components helped reduce import dependence and improve cost efficiency, while expanding our dealer network across Tier-2 and Tier-3 cities enabled access to new customer segments and consistent service standards. Strategic partnerships with Triwheels Fintech services, Credfin, Ecofy, Bajaj Finserv, Bundela Fin Corp. and other financial partners made vehicle financing easier and more accessible for customers, supporting broader adoption.

StartupTalky:  Looking ahead to 2026, what opportunities do you see emerging in India’s EV and last-mile mobility market?

Kunal Arya: India’s EV market continues to grow rapidly, with electric two-wheelers leading the adoption curve and outpacing other vehicle categories in both sales and penetration. The shift is strongest in Tier 2 and Tier 3 cities, where practical, affordable electric mobility solutions are increasingly becoming a preferred choice for daily commuting and short-distance transport. Within two-wheelers, demand is particularly rising for models that serve last-mile mobility and delivery needs, combining reliability, low running costs, and ease of ownership. To address evolving requirements in the segment, we recently introduced a facelifted version of our some of the scooter models, offering improved range, enhanced utility, and greater operational efficiency, specifically designed for gig workers, delivery professionals, and small businesses operating in urban and semi-urban areas.

StartupTalky:  What is your long-term vision for the Zelio E-Mobility, and what strategic steps are planned for the next phase of growth?

Kunal Arya: Our long-term vision is to accelerate India’s transition to sustainable mobility by delivering reliable, high-quality slow-speed 2W and 3W electric vehicles that are accessible to every household, promoting economic inclusion, customer delight, and a greener future. We aim to be a benchmark brand in India’s slow-speed EV segment, trusted by working professionals, housewives, students, and senior citizens across Tier-2 and Tier-3 cities, and supported by strong service networks. Guided by the spirit of Aatmanirbhar Bharat, we are committed to strengthening domestic EV manufacturing, localizing our supply chain, creating jobs, and delivering affordable innovation and nationwide mobility access.

To achieve this, we are prioritizing the strengthening of our manufacturing backbone. A new facility in Patan, Hisar, will expand our production capacity, while leasing new industrial premises in Odisha will enhance our reach in eastern India’s fast-growing EV market. Additionally, we plan to expand our dealer network to more locations, ensuring that our vehicles are easily accessible to customers across the country. Our focus remains on sustainable growth through no-license, no-registration EVs that make mobility convenient, reliable, and environmentally friendly.

StartupTalky:  What practical advice would you give to founders building in India’s EV ecosystem today?

Kunal Arya: Founders building in India’s EV ecosystem should focus on delivering reliable, affordable, and easy-to-maintain products that meet real customer needs. Localising supply chains to reduce import dependence, investing in strong after-sales service, and maintaining financial discipline are equally critical. Balancing growth with operational rigor ensures scalability, while attention to customer experience drives adoption and loyalty in a competitive but rapidly expanding market.

Explore more Recap'25 interviews here.