Hala Mobility’s FY26 Revenue Jumps 4.4X To ₹97 Cr, Posts ₹3.6 Cr Profit

Electric mobility startup Hala Mobility’s operating revenue jumped 4.4X to ₹97 Cr in FY26 from ₹22 Cr in FY25, while its profit after tax (PAT) increased ninefold to ₹3.6 Cr from around ₹40 Lakh. 

The startup now expects its revenue to reach ₹250 Cr to ₹260 Cr in FY27, with its PAT margin improving to 5%-6% from around 3.7% in FY26, founder and CEO Srikanth Reddy told Inc42. 

Founded in 2020 by Reddy, Snehith Reddy Meda and Anand Pareek, Hala provides electric two-wheelers to gig workers, delivery partners, and businesses through rental, leasing, and financing models. 

It currently operates around 17,000 vehicles across nine cities, including Hyderabad, Bengaluru, Mumbai, Vijayawada, Guntur, and Delhi NCR. 

The startup is exploring expansion into Pune, Chennai, Madurai, Tirupati, and Karnal, although it plans to enter only one or two new cities in the near term. Hala counts Zomato, Swiggy, Zepto, Amazon, and Flipkart among its business partners. 

The startup claims to be India’s third-largest EV-as-a-service platform. “We are the third-largest platform in the country today, and we want to become the largest and best platform by November 2026,” Reddy said. 

Hala’s business spans third-party logistics (3PL), rentals, and B2B leasing. Around 50% of its revenue comes from 3PL operations, under which it provides EVs and delivery partners to platforms such as Zomato, Swiggy, Zepto, and Blinkit. 

Rentals contribute around 40% of its revenue, while B2B leasing accounts for the remaining 10%.

For individual users and gig workers, Hala offers daily rentals starting at ₹189 and quarterly leases starting at ₹13,999. It also partners with NBFCs to offer financing options with EMIs that can be up to 20% lower, according to the startup.  

Its portfolio includes electric two-wheelers from Ryder, AMO Electric Bikes, Astrid, and BGauss, offering ranges of up to 100 kilometres.

Hala also operates a franchise model called Hala FOCO, under which franchise partners invest in vehicles while the startup manages their operations. It currently follows a franchise-owned, company-operated (FOCO) model and plans to gradually transition to a franchise-owned, franchise-operated (FOFO) structure.

Fleet Expansion Drives Growth

Hala’s fleet has expanded rapidly over the past two financial years, rising from 2,384 vehicles at the end of FY25 to around 8,100 at the end of FY26. It has since more than doubled to approximately 17,000 vehicles.

The expansion came after Hala spent its early years addressing challenges related to vehicle technology, supply chains, financing, infrastructure, and customer adoption. Reddy said these constraints had limited the startup’s ability to scale but were largely resolved by FY25, allowing it to accelerate vehicle deployment.

“The initial years, until FY25, were about understanding the market and how to introduce these vehicles, while solving challenges related to supply chains, technology, infrastructure, and customer acceptance,” Reddy said.

“After FY25, once we had solved these problems, we entered the market aggressively and accelerated vehicle deployment,” he added. 

Notably, the startup currently has partnership with a Noida-based OEM to manufacture EVs.

Hala is now targeting a fleet of around 32,000 vehicles by the end of FY27. Its fleet uptime currently stands at 94%, while utilisation is around 88% and customer churn is 28%, according to the startup. 

The faster fleet deployment has translated into stronger financials. While Hala’s fleet grew nearly 3.5X between FY25 and FY26, its operating revenue increased more than fourfold. 

“If you look at our fleet, it increased almost 3.5X from 2,400 to 8,100 vehicles, while our revenue grew 4X,” the founder said. 

Vehicle refurbishment has also emerged as an important part of Hala’s business model. The startup refurbishes vehicles after their initial financing or operating cycle and puts them back on the road, allowing it to generate additional revenue from existing assets with lower incremental capital requirements. 

The model became particularly important because limited access to financing was one of the early constraints on Hala’s expansion. The startup first had to demonstrate that its vehicles could complete their initial lifecycle, be refurbished, and remain commercially viable before lenders became more comfortable financing its fleet. 

“If financing is unavailable, we cannot deploy more vehicles and would have to rely entirely on our own capital,” Reddy said. 

The startup eventually demonstrated that refurbished vehicles could be redeployed and continue generating returns beyond their initial financing period.

“Once we were able to refurbish and redeploy the vehicles, financiers became more confident. After we demonstrated the results, they began funding more vehicles,” he added.

Reddy said Hala has been profitable since FY24, although its profits were initially small. Profitability improved as the startup redeployed more refurbished vehicles and increased fleet uptime and utilisation.

Hala reported an EBITDA of around ₹27.16 Cr in FY26, translating into an EBITDA margin of about 28%.

Building The Infrastructure For Its Next Phase

As Hala scales its EV fleet, the startup is also investing in infrastructure and technology required to support its expansion. The startup currently owns around 60% of its fleet, while the remaining 40% is leased or operated through franchise partners. 

The startup has expanded its battery-swapping network in Hyderabad to around 110 stations from 50 earlier through a partnership with Sun Mobility. 

The startup is now looking to raise ₹135 Cr entirely through equity in a Series A round, of which ₹45 Cr has been committed by existing investors. While Reddy did not disclose the prospective lead investor, he said discussions are underway and the round is expected to close within the next three to four months. 

Hala plans to use the fresh capital to expand its fleet beyond its FY27 target of 32,000 vehicles, with the startup eventually aiming to operate around 60,000 vehicles. 

“We plan to expand our fleet from 32,000 to 60,000 vehicles. We also want to enter adjacent areas of passenger mobility and invest significantly in the segment. Our third priority is improving and commercialising our technology stack,” Reddy said.

In 2024, the startup raised ₹51 Cr in a mix of equity and debt from cofounders Reddy and Meda, Previa Health’s founder Phani Ramineni, Sarthy Angels, Bestvantage, and a host of high-net-worth individuals (HNIs) and family offices. 

Overall, Hala has raised around ₹25 Cr in equity and ₹75 Cr through debt and other instruments to date, Reddy said. 

Hala competes with the likes of Zypp Electric, Yulu, and Bounce Infinity in India’s last-mile delivery and EV fleet market. In FY27, it plans to enter one or two new cities while deepening its presence in existing markets. 

The post Hala Mobility’s FY26 Revenue Jumps 4.4X To ₹97 Cr, Posts ₹3.6 Cr Profit appeared first on Inc42 Media.