Key facts
- Indian EV startup River raised $120 million in a Series C funding round.
- The funding round was led by Elev8 Venture Partners and Claypond Capital.
- River's total capital raised to date is $144 million.
- The funds will be used to scale manufacturing and launch two new electric vehicle models.
- River aims to achieve operational profitability by 2028-29.
- A new manufacturing facility with a capacity of 700,000-800,000 vehicles annually is planned.
Indian electric vehicle startup River announced on Wednesday it has raised $120 million in a Series C funding round to scale its manufacturing operations and introduce new models. The round was led by Indian investors Elev8 Venture Partners and Claypond Capital, with participation from several other firms including existing backers Yamaha Motor, Al-Futtaim Group, and Mitsui.
This funding brings River's total capital raised to $144 million. The company, founded in 2021, operates in India's rapidly growing electric two-wheeler market, differentiating itself with a focus on a single utility-focused moped model, the Indie, launched in 2023. River currently sells approximately 6,000 vehicles monthly through over 75 stores across India, having sold more than 50,000 units to date.
River's CEO Aravind Mani stated that the company has significantly scaled its manufacturing, increasing daily production from 20 to 300 vehicles. The Indie model offers a claimed range of about 99 miles and is targeted at self-employed individuals aged 28 to 35. Driven by the Indie's sales, River's revenue increased by 330% in the fiscal year ended March 2026, reaching about $11 million monthly.
The startup aims to achieve operational profitability when monthly production reaches 20,000 to 25,000 vehicles, a target set for 2028-29. Gross margins are expected to improve with scale. River plans to introduce two new models next year, constrained by its current factory capacity which produces about 10,000 vehicles monthly. Construction of a new, larger facility is slated to begin within two months, with the first phase expected by mid-2027, boasting an annual capacity of 700,000 to 800,000 vehicles. River also intends to expand its retail presence to over 200 stores by March 2027 and 400 by March 2028. Mani noted that this funding round signifies a shift in investor focus from product development to scaling, with new investors betting on the company's demonstrated traction.