Bengaluru-based startup River attracts investments from leading tech investors to expand its electric two-wheeler production and delivery capabilities
River, a prominent two-wheeler electric vehicle (EV) manufacturer based in Bengaluru, announced on Tuesday that it has successfully raised $15 million (approximately INR 124 crore) in a recent funding round. The funding round was led by Dubai’s Al Futtaim Group and witnessed participation from existing investors including Lowercarbon Capital, Toyota Ventures, Maniv Mobility, and Trucks VC.
With this fresh injection of capital, River aims to reinforce its growth trajectory and enhance its manufacturing and distribution networks. The startup plans to commence vehicle deliveries in August of this year, marking a significant milestone in its electric mobility journey. Notably, Toyota Ventures’ participation in this funding round marks their inaugural investment in the Indian market.
Earlier this year in February, River introduced its first electric two-wheeler model named Indie. The launch of this model positioned River to compete against established players in the escooter market such as Ola Electric and Ather Energy. During the unveiling, River’s CEO Aravind Mani shared that the company was on track to secure the next round of funding, enabling the development of an effective go-to-market strategy.
Prior to the recent funding, River had already raised a total of $13 million across two previous rounds. These rounds included a $2 million seed funding round in March 2021 and an $11 million Series A round in July of the previous year.
Aravind Mani, cofounder and CEO of River, expressed his enthusiasm for the startup’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 escooter offered by River is equipped with a motor boasting a peak power of 6.7 kW and can achieve a top speed of 90 km per hour. Its current model is priced at INR 1.25 lakh (ex-showroom Bengaluru) and features a 4 kWh battery that provides a range of 120 km. Paul Willis, the president of Al Futtaim Automotive, lauded River’s vision and commitment to in-house product development, stating, “We evaluated over 50 electric two-wheeler startups, and are impressed by the team’s vision and relentless commitment to in-house product development. I am confident that their products will see great success, in India and internationally.”
It is worth mentioning that River’s vehicle deliveries will begin amidst the backdrop of allegations of misappropriation of FAME-II subsidies against some OEMs and a reduction in per vehicle subsidy, both of which have impacted the sales of electric two-wheelers. Several manufacturers, including Ola, Ather, Matter, and AMO Mobility, have raised the prices of their vehicles following the government’s subsidy cuts. River plans to announce the new price for its escooter after June 30, as stated on their website.
Despite these challenges, the Indian EV ecosystem continues to attract significant investor interest, as demonstrated by recent funding activities. In March, Goa-based electric mobility startup Kabira Mobility secured $50 million in its Series A funding round from Qatar’s Al-Abdulla Group. Bhavish Aggarwal’s Ola Electric reportedly raised $300 million last month as well.