SUMMARY
The round also saw participation from its existing investors Al-Futtaim Automotive, Lowercarbon Capital, Toyota Ventures, and Maniv Mobility
While the EV startup will be coming up with a new vehicle model in 2026, it is planning to expand its presence to 100 cities by then
In the next 8-10 months, the startup aims to expand its presence to 10 more cities, including Chennai, Hyderabad, Ahmedabad, Surat, Pune, Kochi, and Trivandrum
Bengaluru-based electric two-wheeler manufacturing startup River has raised $40 Mn (INR 335 INR Cr) in its Series B funding round led by Japan’s Yamaha Motor Corporation to bolster its product offering and distribution channel.
The round also saw participation from its existing investors Al-Futtaim Automotive, Lowercarbon Capital, Toyota Ventures, and Maniv Mobility.
Speaking with Inc42, Aravind Mani, the cofounder and CEO of River said the fresh funds will be primarily used for strengthening distribution and scaling R&D capabilities and product development.
Mani added that River will be coming up with a new vehicle model in 2026, and the initial stages of the product development have already started. The EV startup is also planning to expand its presence to 100 cities by then.
Founded in March 2021 by Aravind Mani and Vipin George, River manufactures multi-utility escooters. It launched its first vehicle model, Indie, in February last year. The startup began selling the escooter in October 2023. The startup claims to have designed and developed the product in-house. River’s R&D facility is located in Bengaluru and its manufacturing facility is on the outskirts of the city.
River also opened its first store in the city in January 2024. In the next 8-10 months, the startup aims to expand its presence to 10 more cities, including Chennai, Hyderabad, Ahmedabad, Surat, Pune, Kochi, and Trivandrum.
The startup’s latest fundraise comes months after it raised $15 Mn in a round led by Dubai’s Al Futtaim Group. Including the Series B funding, River has raised $68 Mn (INR 565 INR Cr) since its inception.
Commenting on the new fund infusion in a statement, Paul Willis, CEO of Al-Futtaim Automotive said, “Indie made a strong debut in the Indian market and stands out from anything that is out there. We also see strong potential for Indie in many international markets.”
As per Vahan data, River’s EV registration number stood at around 92 units in 2023, which it achieved in the last three months. The EV manufacturer is aiming to achieve 300 units of vehicle sales by March this year.
After adding Yamaha to its cap table, Vipin George, the cofounder and chief product officer at River said that the global automotive giant will also help the startup leverage the company’s design and technology capability.
It is pertinent to note that River is currently operating in a highly competitive market that is ruled by the deep-pocked player Ola Electric and legacy auto companies TVS Motor and Bajaj Auto. River’s Mani believes that this market which currently has around 100 players overall, will gradually consolidate to a top eight-ten players in the coming years.
Amid this competition, Mani said that River is not trying to catch up with the top players to gain a majority market share but rather is focussed on building its fundamentals.
Despite the FAME-II fiasco last year, the escooter registrations in India grew 34% year-on-year (YoY) in 2023, surpassing the 8.5 Lakh units mark.
