Electric Two-Wheeler Maker River Raises $120 Million for Factory Expansion
The Bengaluru startup will build a new plant targeting an annual capacity of 800,000 vehicles.
Bengaluru-based electric two-wheeler maker River has secured $120 million in a Series C funding round to finance a major manufacturing expansion, as the startup prepares to build a second factory capable of producing up to 800,000 vehicles annually.
The capital raise, which brings River’s total funding to $144 million, was co-led by Indian investment firms Elev8 Venture Partners and Claypond Capital. Participation came from Singularity AMC, Anicut Capital, 360 ONE Asset, JIF Capital, and HDFC AMC, alongside existing backers Yamaha Motor, Al-Futtaim Group, and Mitsui. Venture debt comprised less than 12% of the transaction, with the equity portion consisting entirely of primary capital, founder and Chief Executive Officer Aravind Mani said.
River plans to begin construction on the new manufacturing plant within the next two months, targeting the commissioning of its first phase by mid-2027. The expansion comes as the company nears maximum capacity at its flagship facility outside Bengaluru, which currently produces 300 vehicles a day—or roughly 10,000 per month—following recent operational upgrades.
The company’s growth has been driven by its single model, a utility-focused electric moped called the Indie. Priced at ₹155,000 ($1,630) and boasting a claimed range of 99 miles, the vehicle is aimed primarily at self-employed buyers between 28 and 35 years old. River currently delivers about 6,000 vehicles monthly across more than 75 retail locations, having sold over 50,000 units to date.
Ramping up Indie deliveries pushed River’s revenue up by 330% for the fiscal year ended March 2026, bringing monthly revenue to approximately ₹1 billion ($11 million). The startup expects gross margins to reach double digits as production expands, aiming for operational profitability by fiscal 2028–29 when monthly volume scales to between 20,000 and 25,000 units.
Two-wheelers remain the primary driver of EV adoption in India, where lower upfront costs and daily commute requirements make electric scooters and mopeds far more popular than four-wheeled passenger vehicles. River competes in an increasingly crowded market against legacy manufacturers TVS Motor and Bajaj Auto, as well as venture-backed rivals Ather Energy and Ola Electric.
Constrained by current factory capacity, River plans to introduce two additional vehicle models next year once the new manufacturing footprint is in place. To support the expanded lineup, the company targets expanding its store network to more than 200 outlets by March 2027 and 400 outlets by March 2028.
Mani noted that while earlier capital raises financed basic product development and technology engineering, the latest round represents institutional validation of River’s manufacturing operations. Foreign investors often understand India’s macroeconomic trajectory but frequently misjudge local consumer behavior in the two-wheeler segment, he added.
