Bengaluru-Based Electric Startup River Negotiates to Secure $80 Million Investment
The electric two-wheeler startup River is in advanced negotiations to raise approximately $80 million (Rs 720 crore) from strategic investors, including A91 Partners, Claypond Capital, and Elev8 Venture Partners, as reported by industry insiders.
This funding round will position River with a valuation of around $200 million, the sources added.
Of the anticipated capital, about $60 million is expected to come from new investors, while the remaining $20 million will be contributed by current stakeholders. The Rainmaker Group (TRMG) is orchestrating this fundraising effort.
River has refrained from commenting on the situation, and inquiries directed at A91 Partners, Elev8 Venture Partners, Claypond Capital, and TRMG have gone unanswered.
Existing Investor Landscape
Founded in March 2021 by Aravind Mani and Vipin George, this upcoming funding round marks a significant milestone for River, as it will be the first instance where Indian investors hold substantial stakes. Previously, the company was primarily supported by major international funds.
Current investors include Yamaha Motor Company, Marubeni Ventures, and Mitsui & Co. from Japan. Additional backers encompass Al-Futtaim Automotive, based in Dubai, Lowercarbon Capital spearheaded by Chris Sacca and his spouse Crystal, Toyota Ventures’s early-stage investment wing, and Maniv from Tel Aviv.
This forthcoming fundraising is poised to be River’s most substantial since its inception, having previously amassed over $60 million through various rounds. The discussions pertain to its Series C financing.
Projected Utilisation of Funds
River aims to allocate the newly acquired capital to unveil additional electric vehicle (EV) models, enhance distribution networks, and establish a new manufacturing facility. Currently operating over 40 stores, the ambitious goal is to expand to more than 350 locations by March 2028.
Revenue Forecast
The Bengaluru-based company currently delivers approximately 3,000 EVs monthly and anticipates attaining around Rs 500 crore in revenue by the end of FY26, marking nearly a five-fold increase from FY25. Losses were recorded at Rs 196 crore for FY25.
Growth in revenues is expected, driven by new product launches. In previous communications, co-founder and CEO Aravind Mani indicated that River intends to unveil at least one new model annually starting FY27.
Currently, River’s sole offering is the River Indie, priced between Rs 1-1.5 lakh, competing with models such as Ather’s 450 series, Bajaj’s Chetak, TVS’ iQube, Hero Vida, and Simple Energy.
On January 12, River Mobility announced the commencement of Yamaha EC-06 electric two-wheeler production in Karnataka.
Trends in the Indian EV Two-Wheeler Market
This funding initiative arrives as India’s electric mobility sector gains substantial traction. The electric two-wheeler market registered a commendable 12% year-on-year sales increase in January, as complementary government data reveals a total of 1,10,316 units sold, up from 98,427 in January 2025.
Currently, TVS, Ather, and Bajaj dominate the market share ranks. Notable is the decline of Ola Electric, previously a leader, which saw monthly sales tumble to 7,512 units in January 2026, falling to fifth position within the marketplace.
In January, River secured the seventh position among OEMs, selling 2,574 units, reflecting a 321% surge compared to 611 units sold last year—a considerable achievement marking its highest monthly Indie deliveries to date.
The wider EV ecosystem remains a beacon of investor interest, with a recent report from data analytics firm Tracxn revealing that India’s electric mobility sector raised $1.4 billion in 2025—a noteworthy 27% increase from 2024’s $1.1 billion.
Source link: Moneycontrol.com.
