Yamaha Motor Backs River’s Electric SUV Scooter Expansion in India
Indian electric two-wheeler startup River has recently secured a $40 million boost in a Series B funding round led by Yamaha Motor. This financial infusion propels the company’s R&D initiatives and bolsters its position in India with its pioneering electric SUV scooter, Indie. The funding round not only marks a significant milestone for River but also brings its total raised capital to $68 million across four funding rounds.
The investment round drew wide participation from previous backers such as Futtaim Automotive, Lowercarbon Capital, Toyota Ventures, Trucks VC, and Maniv Mobility…
River, established in March 2021, is intent on revolutionizing India’s two-wheeler market with electric solutions. The country presents a ripe market for electric vehicles (EVs), with a robust push to shift from traditional fossil fuels to sustainable EVs. Notably, electric two-wheelers account for nearly half of all EV sales in India, showcasing the segment’s potential and competitiveness.
The startup’s flagship offering, the Indie scooter, stands out with its sizeable 14-inch wheelbase and ample storage capable of fitting two helmets and additional cargo. This contrasts sharply with competitors’ offerings, which typically feature 12-inch wheels and limited storage. Priced at $1,700, Indie embodies the “SUV of scooters,” combining utility with lifestyle appeal.
River’s ambitions are matched by its manufacturing capabilities, with a factory near Bengaluru designed to produce up to 100,000 units annually. The company aims to boost its sales numbers significantly, targeting 300 scooters a month by March and reaching a milestone of 3,000 units per month by the end of 2024. By 2026, River plans to have a presence in 100 cities, achieving a monthly sales figure of 9,000 scooters and generating approximately $200 million in revenue.
A key strategy for River is establishing a robust distributor network to manage 90% of its sales, thereby emphasizing the importance of broadening its market footprint beyond direct sales. Co-founders Aravind Mani and Vipin George bring a wealth of experience and a clear vision for River’s future, including aggressive R&D investment and exploring new product developments that align with the brand’s utility focus.
With Yamaha Motor’s strategic investment, River not only gains financial support but also opens potential avenues for collaboration in product development. This partnership could significantly accelerate River’s product innovation and market expansion efforts, leveraging Yamaha’s extensive experience in design and technology.
As River advances towards its ambitious goals, the electric two-wheeler market in India is set for an exhilarating transformation, driven by innovation, sustainability, and enhanced consumer experiences.
