Mumbai: River, a new-age electric vehicle (EV) startup, has raised $40 million in a Series B funding round led by Yamaha Motor Corp, Japan. This round also saw participation from existing investors such as the Al Futtaim Group, Lowercarbon Capital, Toyota Ventures, and Maniv Mobility, the company said in a statement.
The funds will be used to expand River’s distribution and service networks across India and to boost investment in R&D for upcoming product developments.
Founded in 2021, River launched its first product, the Indie, in October 2023. The Indie, which was entirely designed and developed at River’s R&D center in Bengaluru and manufactured at its Hoskote factor. In January this year, River saw its first store opening in Bengaluru.
Yamaha’s significant investment will result in the company holding a minority stake in River. Hajime “Jim” Aota, chief general manager of New Business Development Centre, Yamaha Motor Co, expressed admiration for River’s rapid progress and its emphasis on design and technology.
To date, River has raised a total of $68 million, approximately ₹565 crore, since its inception.
Paul Willis, CEO of Al-Futtaim Automotive, praised the Indie’s market debut and highlighted its potential in both Indian and international markets, expressing excitement for River’s future growth.
River represents the first Indian investment for its backers, including Maniv Mobility from Tel Aviv, Trucks VC from San Francisco, Lowercarbon Capital, Toyota Ventures, and the Dubai-based Al-Futtaim Automotive.
Aiming to increase its monthly sales from 100-150 vehicles to approximately 1,000, River also plans to achieve positive unit economics in the near future, according to its co-founder and chief executive, Aravind Mani.
The Indian EV sector, particularly in the two-wheeler segment, has seen over a dozen startups emerge, benefiting from government incentives like the FAME subsidy. Despite market consolidation, well-funded startups with superior product offerings are expected to thrive.
Vipin George, co-founder and chief product officer at River, believes the partnership with Yamaha will enhance their design and technology capabilities, propelling River towards greater achievements in the EV landscape.
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Published: 06 Feb 2024, 10:33 AM IST