River Raises $120 Million to Expand EV Production and Launch New Models

Indian electric vehicle startup River has raised $120 million in a Series C funding round to expand manufacturing capacity, introduce new vehicle models and accelerate its retail expansion as competition intensifies in the country’s fast-growing electric two-wheeler market.

The funding round was led by Elev8 Venture Partners and Claypond Capital, with participation from Singularity AMC, Anicut Capital, 360 ONE Asset, JIF Capital and HDFC AMC, alongside existing investors Yamaha Motor, Al-Futtaim Group and Mitsui. Founder and Chief Executive Officer Aravind Mani said less than 10% to 12% of the financing came through venture debt, while the equity investment consisted entirely of primary capital. The latest round brings River’s total funding to $144 million.

Founded in 2021, River competes with newer electric vehicle manufacturers including Ather Energy and Ola Electric, as well as established companies such as Bajaj Auto and TVS Motor. India’s electric two-wheeler segment has become the country’s largest driver of EV adoption.

Single-model strategy delivers rapid growth.

Unlike many competitors that offer multiple products, River has focused on a single utility-oriented electric scooter called the Indie, introduced in 2023. The company says it now sells around 6,000 vehicles each month through more than 75 retail stores across India and has delivered over 50,000 units to customers.

Priced at ₹155,000 (approximately $1,630), the Indie offers a claimed driving range of about 99 miles and can be customised with optional accessories. Mani said the scooter primarily appeals to self-employed customers between the ages of 28 and 35.

The company reported that revenue increased by 330% during the fiscal year ended March 2026, while monthly revenue has reached roughly ₹1 billion (about $11 million). Mani attributed much of that progress to improvements in manufacturing efficiency, noting that production has increased from around 20 vehicles per day to approximately 300 vehicles daily.

Production expansion to support new models

Rivian expects to achieve operational profitability once monthly production reaches between 20,000 and 25,000 vehicles, a milestone it aims to reach during the 2028-29 period. The company also expects gross margins, which are currently approaching double digits, to improve further as production volumes increase.

The startup plans to introduce two additional electric vehicle models beginning next year. Mani said the current manufacturing facility on the outskirts of Bengaluru is approaching its upgraded capacity of around 10,000 vehicles per month, making further expansion necessary before additional products can be introduced.

Construction of a second manufacturing facility is expected to begin within the next two months after the final site is selected. The first phase of the new plant is scheduled to become operational by mid-2027 and will have an annual production capacity of approximately 700,000 to 800,000 vehicles.

Retail network and investor focus evolving

Alongside manufacturing expansion, River plans to increase its retail presence to more than 200 stores by March 2027 before growing to around 400 outlets by March 2028.

Mani said the latest funding reflects a shift in investor confidence, with earlier financing rounds supporting product development and technology while the new investors are backing the company’s ability to scale manufacturing after demonstrating market traction. He added that although many international investors have long recognised India’s electric vehicle opportunity, some have underestimated how quickly Indian consumers would adopt electric two-wheelers and how local purchasing behaviour differs from other markets.