B2B News | Source: River | River, the Bengaluru-based electric two-wheeler startup, has raised $120 million in a Series C funding round to expand production capacity, grow its retail network, and prepare new electric models for launch. The round was led by Indian investment firms Elev8 Venture Partners and Claypond Capital, with participation from Singularity AMC, Anicut Capital, 360 ONE Asset, JIF Capital, and HDFC AMC, alongside existing backers Yamaha Motor, Al-Futtaim Group, and Mitsui.
The new capital will go toward expanding capacity at River’s existing factory, building a new greenfield manufacturing plant, launching new products in the utility lifestyle segment, and driving gross margin expansion and EBITDA profitability.
Utility-first positioning
Since launching the River Indie in 2023, the company has positioned itself as a differentiated player in India’s electric two-wheeler market, building utility-first products designed specifically for Indian consumers. River currently operates more than 75 stores across the country and plans to expand to over 350 stores by March 2028.
Aravind Mani, co-founder and CEO of River Mobility, called the round an important milestone, saying it reinforces the company’s belief in building India’s first utility- and design-based mobility brand. He said the capital will let River accelerate its product roadmap and expand its manufacturing and retail footprint nationally.
Investor backing
Navin Honagudi, managing partner at Elev8 Venture Partners, said India’s electric two-wheeler market is entering a defining growth phase, pointing to strong consumer adoption, improving economics, and rising demand for differentiated products. He credited River’s product thinking and execution, and said the company is well positioned to become one of India’s defining EV brands.
Sekhar Garisa, managing director at Claypond Capital, pointed to River’s combination of disciplined execution and product differentiation as key to its growth in a competitive market, adding that the firm is keen to support River’s scale-up and its contribution to domestic manufacturing and the energy transition.
Hajime Jim Aota, chairman of Yamaha India Group, highlighted River’s vertically integrated EV technology platform as central to its success, and said Yamaha is glad to be part of the company’s next growth phase.
Growth momentum
River says it has seen strong momentum over the past year, with monthly sales growing to 5,000 units, while continuing to expand manufacturing capacity and its nationwide distribution network. The company plans to introduce new products over the coming years as it builds out its position in India’s fast-growing electric mobility market.
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