Funds to launch new EV models, expand stores, and build a manufacturing plant
Electric two-wheeler startup River is in advanced discussions to raise around $80 million (Rs 720 crore) from A91 Partners, Claypond Capital (Ranjan Pai), and Elev8 Venture Partners, according to sources.
The round values River at around $200 million, sources told Moneycontrol.
About $60 million is expected from new investors, with the remaining $20 million coming from existing backers. The fundraise is being run by The Rainmaker Group. River Mobility declined to comment on the developments.
Who are River’s existing investors?
Founded in March 2021 by Aravind Mani and Vipin George, River is backed by investors such as Marubeni Ventures, Mitsui & Co, Yamaha Motor Co, Ltd, Dubai-based Al Futtaim Group, Chris Sacca’s Lowercarbon Capital, Toyota Ventures, Maniv Mobility, and Trucks VC.
This will be River’s largest funding round since its founding and the first where Indian investors take sizable positions.
What will River use the fresh funds for?
River plans to use the capital to launch new EV models, expand distribution, and set up a new manufacturing plant. The company currently operates 40+ stores and aims to scale to 350+ by March 2028.
What are River’s revenues?
The Bengaluru-based firm delivers about 3,000 EVs a month and expects to close FY26 with ~Rs 500 crore in revenue, up nearly 5x from FY25. Losses stood at Rs 196 crore in FY25. River currently sells a single model-the River Indie-priced between Rs 1-1.5 lakh, competing with Ather, Bajaj, TVS, Hero, Ola and others
For the Bengaluru-based firm, the revenues are likely to increase on the back of new launches.
In earlier media interviews, River’s co-founder and CEO Aravind Mani had said River will launch at least one new model each year starting FY27.
River currently has just one model, the River Indie, priced at around Rs 1-1.5 lakh, which competes with Ather’s 450 series, Bajaj’s Chetak, TVS’ iQube, Hero Vida, Simple Energy and more.
On January 12, River Mobility announced that the firm is manufacturing the Yamaha EC-06 electric two-wheeler in Karnataka .
India’s EV Two-wheeler Market
The funding comes at a time when India’s electric mobility story continues to gather momentum.
India’s electric two-wheeler (e2W) market kicked off 2026 on a strong note, clocking a 12% year-on-year increase in sales in January, even as a few manufacturers grappled with headwinds. Government’s Vahan data shows that total e2W volumes reached 1,10,316 units during the month, up from 98,427 units in January 2025.
Currently, TVS, Ather and Bajaj are the top three players in terms of market share. Ola Electric, which once domincated the market, Ola Electric experienced a significant decline in sales in January of 2026 dropping to 7,512 units and falling to the 5th position in the Indian electric two-wheeler market.
River Mobility ranks seventh among OEMs in January. The company sold 2,574 units during the month, a 321 percent jump from 611 units a year ago, when volumes were low. This also marks River’s highest-ever monthly Indie deliveries.
Overall, the broader EV ecosystem continues to attract investor interest. A recent report by data firm Tracxn said that India’s electric mobility sector raised $1.4 billion in 2025 YTD, marking a 27% rise over the $1.1 billion raised in 2024.
