Indian EV startup River raises $120M Series C to scale production, launch more models

Indian electrical conveyance startup River connected Wednesday said it had raised $120 cardinal to standard manufacturing for its adjacent signifier of growth.

The Series C circular was led by Indian investors Elev8 Venture Partners and Claypond Capital, with information from Singularity AMC, Anicut Capital, 360 ONE Asset, JIF Capital, and HDFC AMC, alongside existing backers Yamaha Motor, Al-Futtaim Group, and Mitsui.

Less than 10% to 12% of the circular comprised task debt, and the equity backing raised was wholly superior capital, with nary secondary stock sales, laminitis and CEO Aravind Mani (pictured above, right) told TechCrunch. The circular brings River’s full superior raised to $144 million.

Founded successful 2021, River is among a clump of startups successful India’s rapidly expanding electrical two-wheeler market, competing with newer entrants specified arsenic Ather Energy and Ola Electric arsenic good arsenic bequest manufacturers Bajaj Auto and TVS Motor. This marketplace has truthful acold been the biggest root of EV adoption successful India.

Unlike astir of its rivals, River has built its concern astir a azygous electrical moped model, dubbed Indie, which it launched successful 2023. The startup says it present sells astir 6,000 vehicles a period done much than 75 stores crossed India, and has truthful acold sold much than 50,000 units.

River has sought to transportation the Indie arsenic a utility-focused conveyance alternatively of competing crossed aggregate user segments, Mani said, adding that the startup’s biggest accomplishment implicit the past twelvemonth had been learning however to standard manufacturing.

“There was a constituent successful clip erstwhile we were making 20 vehicles a day. Today we marque 300 vehicles a day, and that scale-up has not been easy. This is the steepest learning curve for immoderate institution retired there,” helium said.

River IndieImage Credits:River

The ₹155,000 ($1,630) Indie offers a claimed scope of astir 99 miles, arsenic good arsenic optional accessories. Mani said the startup’s emblematic customers are self-employed radical aged betwixt 28 and 35.

Driven by rising income of the Indie, River’s gross accrued by 330% successful the fiscal twelvemonth ended March 2026, portion monthly gross reached astir ₹1 cardinal (around $11 million), Mani said.

River expects to go operationally profitable erstwhile monthly accumulation reaches 20,000 to 25,000 vehicles, which Mani said the startup aims to execute by 2028–29. Gross margins, presently approaching treble digits, should amended arsenic accumulation scales, helium said.

While the single-model absorption has helped River summation traction, it plans to present 2 much models from adjacent year.

“The regularisation is the capacity. I don’t person capableness to bash 1 much exemplary contiguous successful my existent factory,” Mani said.

River is nearing capableness astatine its archetypal manufacturing installation connected the outskirts of Bengaluru, which tin present nutrient astir 10,000 vehicles a period pursuing caller upgrades, and the startup expects to afloat utilize the works by aboriginal adjacent year, helium added.

Construction connected a caller installation is expected to statesman wrong the adjacent 2 months erstwhile the determination is finalized, Mani said. The archetypal signifier is slated to beryllium commissioned by mid-2027, and is expected to person an yearly accumulation capableness of astir 700,000 to 800,000 vehicles.

The startup besides plans to grow its retail footprint to much than 200 stores by March 2027, and turn that to astir 400 outlets by March 2028.

The caller round, Mani said, marked a displacement successful what investors were backing. Earlier financings supported merchandise improvement and technology, and the caller investors are betting connected the startup’s quality to standard present that it has demonstrated traction.

He added that portion Silicon Valley investors had agelong recognized India’s EV opportunity, galore underestimated however section consumers would follow electrical two-wheelers. “They recognize macroeconomics. What they don’t recognize is the lawsuit behavior,” Mani said.