In a series of significant fundraise, River Mobility, a manufacturer of electric two-wheelers has managed to raise $120 million. Through an oversubscribed Series C round of funding, making it the biggest private funding received by any firm in the Indian EV two-wheelers space. The Series C investment has been done through a combination of equity and venture debt by the two firms Elev8 Venture Partners and Claypond Capital.

The list of investors who have participated in the new round of financing for River Mobility includes Singularity AMC, Anicut Capital, 360 ONE Asset, JIF Capital, HDFC AMC, apart from the existing shareholders which include Yamaha Motor Corporation, Al Futtaim Group, Mitsui & Co. and venture debt firms Alteria Capital, Innoven Capital, Stride Ventures.

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Newly Raised Funds for the Next Level of Growth

The newly raised capital will be invested in a number of strategic moves which will be taken by River Mobility to scale up its operations and improve its profitability.

For the capital raised through the funding round, the company plans to:

  • Enhance its existing production capacity at the current manufacturing plant.
  • Construct a greenfield manufacturing plant.
  • Introduce new products in the utility lifestyle electric vehicles category.
  • Optimize its gross margins and aim for EBITDA profitability.

Furthermore, the latest funding round is especially significant since it represents the first major investment into River by Indian institutional investors. This development adds another feather to the cap of an already strong portfolio of global investors.

River Continues to Build Momentum in India's EV Market

River, having launched its electric scooters in 2023, has been concentrating on developing utility-oriented two-wheeled electric vehicles for the Indian market. Over the last three years, the company has continued to build up its retail network and manufacturing infrastructure.

Currently, River runs more than 75 stores across India and set an aggressive goal of having more than 350 stores in operation by March 2028. In addition, its monthly sales have grown to approximately 5,000 units as the River brand continues to gain traction in the competitive electric scooter market.

Aravind Mani, Co-founder & CEO, River Mobility, shared, "This funding marks an important milestone in River's journey. The confidence shown by both our existing and new investors reinforces our belief that there is tremendous opportunity to build India's first utility and design based mobility brand. This capital gives us the ability to accelerate our product roadmap, expand our manufacturing footprint and presence across the country."

Investors Back River’s Long Term Vision

Navin Honagudi, Managing Partner, Elev8 Venture Partners, said, “The electric two-wheeler market in India is entering a defining growth phase, driven by strong consumer adoption, improving economics, and increasing demand for differentiated products. River stands out for its sharp product thinking, exceptional execution capability, and a highly differentiated positioning in the market. Aravind, Vipin and the team have built a brand that resonates deeply with consumers looking for brilliant design, utility and durability. We believe River is well-positioned to emerge as one of the defining EV companies from India.”

Sekhar Garisa, Managing Director, Claypond Capital, said, “River has combined disciplined execution and thoughtful product differentiation to rapidly grow and garner customer love in a competitive market. We are excited to support the team as they scale further while contributing to the country’s energy transition and domestic manufacturing ambitions.”

Hajime Jim Aota, Chairman, Yamaha India Group, said, “River’s focus on building vertically integrated electric vehicle technology platform has been a key driver of its success. Yamaha are proud to see the progress made by River so far and are excited about being part of the next phase of growth.”

ELCTRIK Speaks

The current round of fundraising by River Mobility is taking place at a point. When there is stiff competition within India’s two-wheeler electric vehicle market space. The expected investment in areas such as production, development of innovative products, and expansion of its retail base. Suggests that River is positioning itself for a future where it scales. River stands to become one of India’s leading electric vehicle brands in the coming years. Provided it executes its plans and maintains quality and efficiency of its operations.

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