Bengaluru-based electric vehicle (EV) manufacturer, River, raised $15 million funds led by Dubai’s Al Futtaim Group where existing investors, including Lowercarbon Capital, Toyota Ventures, Maniv Mobility, and Trucks VC, also participated.
The startup plans to utilize the fresh capital to strengthen its growth prospects and prepare its manufacturing and distribution networks for vehicle delivery, which is set to commence in August this year. Notably, this investment marks Toyota Ventures’ first foray into the Indian market.
River’s latest funding milestone follows the launch of its inaugural electric two-wheeler model, Indie, in February. With this offering, River aims to compete with prominent players in the e-scooter market such as Ola Electric and Ather Energy. The startup’s CEO, Aravind Mani, previously stated that River was on track to secure the next funding round to develop its go-to-market strategy during the Indie launch.
Prior to this funding, River had raised $13 million across two rounds. A seed funding round of $2 million was secured in March 2021, followed by a $11 million Series A round in July of the previous year.
Mani expressed his satisfaction with River’s progress, stating, “At River, we’ve been quietly working in the background for the last two years. In just 20 months, we launched our first product, the Indie, which has by now successfully covered 100,000+ kilometers in testing. Now we’ve set the base to build a billion-dollar business.”
The Indie e-scooter features a motor with a peak power of 6.7 kW, reaching a top speed of 90 km per hour. Priced at INR 1.25 lakh (ex-showroom Bengaluru), the current model is equipped with a 4 kWh battery and offers a range of 120 km.
Paul Willis, President of Al Futtaim Automotive, praised River’s vision and commitment to in-house product development, expressing confidence in the success of their offerings in both domestic and international markets.
Despite the challenges posed by allegations of misappropriation of FAME-II subsidies against certain OEMs and a reduction in per vehicle subsidies impacting electric two-wheeler sales, investors continue to display a bullish outlook on India’s EV ecosystem. River plans to announce the revised price for its e-scooter after June 30.
The Indian EV market continues to witness investor interest across various segments. In March, Goa-based Kabira Mobility raised $50 million in a Series A funding round from Qatar’s Al-Abdulla Group, while Ola Electric reportedly secured $300 million in recent funding. Furthermore, electric two-wheeler registrations in the country exceeded 100,000 in May 2023, signaling a growing interest in eco-friendly transportation options.
