River Mobility has raised $120 Mn in a Series C round co-led by Elev8 Venture Partners and Claypond Capital to expand manufacturing, launch new EVs and accelerate profitability
The fundraise underscores growing investor confidence in India's electric two-wheeler market as demand rebounds
The Series C round combines equity and venture debt, with participation from Indian institutional investors for the first time alongside existing global backers
Electric two-wheeler manufacturer River Mobility has raised $120 Mn (about ₹1,141 Cr) in its Series C funding round co-led by Elev8 Venture Partners and Claypond Capital. The round also saw participation from Singularity AMC, Anicut Capital, 360 ONE Asset, JIIF, and HDFC AMC, along with existing investors, including Yamaha Motor Corporation, Al Futtaim Group, and Mitsui & Co.
Notably, the round was a mix of equity and debt funding, with Elev8 contributing around $25 Mn. The debt portion saw participation from Alteria Capital, Innoven Capital, and Stride Ventures.
This was also River’s first fundraise involving Indian institutional investors. Some of its other foreign backers include Lowercarbon Capital, Toyota Ventures and Maniv Mobility, among others.
The EV startup plans to utilise the fresh funds toward expanding its manufacturing capacity, both at the existing factory near Bengaluru and a new greenfield facility. Additionally, the funding will fuel the launch of new products in the utility lifestyle segment and help the startup in its goal of gross margin expansion and EBITDA profitability, River said in a statement.
Founded in 2021 by Aravind Mani and Vipin George, River manufactures multiutility escooters. In 2023, it launched its first escooter, Indie, positioned as the ‘SUV for scooters’ due to its roomy exterior and ability to traverse rugged terrain.
The escooter has been built keeping in mind solo entrepreneurs like carpenters, builders and small business owners to ensure they can carry their tools of trade in a single vehicle. Indie has an underseat storage of 43 litres, compared to Ola Electric’s 32 litres and TVS’ 34 litres.
The startup currently operates over 75 stores across India and is targeting to expand its footprint to over 350 stores by March 2028. River has witnessed significant growth in its sales volumes in the ongoing year amid a revival of overall electric two-wheeler sales.
In July, River saw a 24% MoM uptick in escooter registrations to 5,514 units from 4,449 in June, according to Vahan data. For context, it sold 4,246 EVs in the entire FY25, which was up 11X from 386 units of EVs sold the previous fiscal.
Prior to the current capital infusion, it had raised $68 Mn in equity funding across multiple rounds. It last raised $40 Mn from Japanese OEM Yamaha Motor Corporation.
Despite the significant fundraise, River claims to have taken a measured approach towards scaling to ensure its products are backed by deep R&D capabilities. It claims to have 16 approved patents in its kitty.
It also boasts a 70,000 sq ft R&D facility and a vehicle assembly plant capable of producing 8,000 escooters every month, which it now plans to expand with a new facility. River also claims to have designed all key components in-house, including the battery pack and the battery management system (BMS), vehicle control unit, connectivity module, electrical architecture and drivetrain.
On the financial front, River claimed its operating revenue jumped 21X in FY25 to ₹104 Cr from ₹5 Cr in the previous fiscal year. It is yet to report its FY26 financial numbers.
The fundraise comes at a time when competition in the electric two-wheeler ecosystem is intensifying at a rapid pace. Almost half of the market is dominated by legacy two-wheeler giants TVS Motors and Bajaj Auto, making it tough for newer entrants to make significant inroads. Both OEMs are planning to invest heavily in their production capacity and product lines as demand for the vehicle category intensifies.
For context, E2W registrations jumped 85% YoY to 1.91 Lakh units in July this year from 1.03 Lakh units in the same period last year.
At the same time, investors continue to be bullish on new-age OEMs as well. Listed E2W maker Ather Energy recently raised about ₹1,300 Cr through a QIP as part of a planned ₹2,500 Cr fundraise to invest in R&D, manufacturing expansion, and marketing. Prior to that, Ola Electric raised ₹780 Cr via a QIP.
Source: Inc42 - Startups
