New-age EV startup River has made headlines by raising $40 million in a Series B funding round. The round was led by Yamaha Motor Co Ltd, Japan, and saw participation from existing investors, including Al Futtaim Group, Toyota Ventures, Lowercarbon Capital, and Maniv Mobility.

As per the startup, the freshly raised funds will be used to expand its distribution and service networks across India. Additionally, a part of the raised funds will be used to boost investment in R&D for upcoming product developments.

River | SUV of Scooters

Co-founded by Aravind Mani and Vipin George in 2021, River is a new-age electric vehicle startup that launched its first product, the Indie, in October 2023. The Indie, which is a utility-lifestyle-focused product, was entirely designed and developed at River’s R&D center in Bengaluru and manufactured at its Hoskote factory.

Since launching sales in October from its first retail store in the southern city, River has delivered close to 200 units of Indie, with plans to increase sales to 300 scooters a month in March and 3,000 units a month by the end of 2024.

Speaking about the growth plans, Aravind Mani, co-founder and CEO of River, highlighted that by 2026, the startup aims to solidify its presence in 100 cities.

Mani said,

“By the time we are a five-year-old company in March 2026, we want to be in 100 cities and come to a scale of selling around 9,000 vehicles a month, which is approximately $200 million in turnover.”

Statement from the Investor

Commenting on the development, Hajime “Jim” Aota, Chief General Manager of New Business Development Centre at Yamaha Motor Company, expressed his admiration and support for River, an EV firm that has quickly distinguished itself through its commitment to cutting-edge design and technology.

Aota added,

“We are excited about the conviction that Aravind and Vipin have for River and how Yamaha can support the company to achieve this.”

To achieve its goals by 2026, River plans to establish a distributor network that will eventually handle 90% of its sales. For the same, the EV startup has begun engagements with some dealers and is initially looking to have distributors in 10 cities, including Hyderabad, Chennai, Ahmedabad, Mumbai, and Kochi.

Earlier in January, the electric vehicle startup saw its first store opening in Bengaluru. Including the latest funding, River has cumulatively raised $68 million in four rounds.

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