EV maker River raises $40 mn in Series B funding from Yamaha Motor and others, working on second electric scooter

Bengaluru-based electric two-wheeler maker River has raised $40 million (Rs 335 crore approx) in Series B led by Yamaha Motor Co.
The resources will be utilised to ramp up production, extend distribution network and bring on-road a second product in the next two years, Arvind Mani, CEO & Co-founder, River told ET.
The round also saw participation from existing investors Al-Futtaim Automotive, Lowercarbon Capital, Toyota Ventures and Maniv Mobility.
River started selling its first product Indie in October 2023. The product has been fully designed and developed at the River R&D facility in Bengaluru and manufactured in the River Factory at Hoskote in the outskirts of Bengaluru. The company opened its first store in Bengaluru in January 2024.

Mani said, “We have received good customer response to the Indie and are in the process of ramping up production and distribution to increase volumes. Currently, we sell only in Bengaluru. We are looking at expanding our operations to 10 cities including Mumbai, Pune, Hyderabad, Chennai and Nagpur by the end of this fiscal.”

In the second phase, the company will extend distribution to 35 cities by March 2025 and 100 by March 2026. The distribution network planned by the company will have a combination of company owned company operated flagship stores and dealerships, Manu informed. River has additionally commenced work on a second electric scooter which will be introduced within the next two years. River currently has the installed capacity to manufacture 100,000 vehicles per annum at its facility in Hoskote. Mani expects to hit maximum production at the facility by the time of launch of the second vehicle.He said, “There is a lot of potential for growth in scooters given the economic. Despite the premium of acquisition costs, which also are coming down, the running costs are a tenth of a petrol product. Every consumer today considering buying a scooter is thinking of electric.” The penetration of electric in scooters already stand at about 10%. Mani expects it to increase to 50% in the next 3-5 years.

“We are impressed by the progress that River has achieved in such a short span of time, especially with the strong focus on design and technology. We are excited about the conviction that Aravind and Vipin have for River and how Yamaha can support the company to achieve this”, Hajime “Jim” Aota, Chief General Manager of New Business Development Centre, Yamaha Motor Co said.

The latest round takes the cumulative fund raised by the company to $68 Million (Rs 565 crore) since its inception in March 2021. River is the first Indian investment of all its investors – Tel Aviv based Maniv Mobility, San Francisco based Trucks VC, Lowercarbon Capital, Toyota Ventures and Dubai based conglomerate Al-Futtaim Automotive.

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