River Mobility has raised $120 million in a Series C funding round as it prepares to build a new factory, launch more products and expand its retail network. The electric-scooter startup is betting that it can carve out a bigger share of the fast-growing electric two-wheeler market currently dominated by TVS Motor, Bajaj Auto and Ather Energy.
The oversubscribed round comprises equity led by Elev8 Venture Partners and Claypond Capital, with participation from Singularity AMC, Anicut Capital, 360 ONE Asset, JIF Capital and HDFC AMC. Existing investors Yamaha Motor Corporation, Al Futtaim Group and Mitsui & Co also participated, alongside venture debt firms like Alteria Capital, Innoven Capital and Stride Ventures. This is River’s first major backing from Indian institutional investors and is one of the largest private investments in the electric two-wheeler sector.
Larger fundraising rounds are likely to continue for category leaders in the electric two-wheeler space, although capital deployment will remain highly selective, said Saket Mehra, partner, and auto industry leader, Grant Thornton Bharat.
“The funding environment is expected to favour businesses with proven commercial traction, differentiated technology and scalable business models rather than broad-based investments across the sector. This trend is already evident, with Q2 2026 witnessing capital concentrated in a handful of high-value transactions despite an overall moderation in PE activity, underscoring investors’ preference for businesses with clear execution capabilities and long-term growth potential.”
Founded in March 2021, the Bengaluru-based startup has raised about $68 million across five earlier funding rounds. It only has one scooter model, the Indie, which it calls the “SUV of scooters” because of features such as 14-inch alloy wheels and 55 litres of storage.
River sold 6,000 scooters in July, giving it a 3 percent share of the electric two-wheeler market. “We have around 75 stores which sell on an average around 80 units, the highest in the industry,” Co-founder Aravind Mani tells Forbes India.
River has positioned the Indie as a premium utility scooter, targeting users who need a vehicle for both work and personal use. “We’ve established a new segment in the scooter space: Utility lifestyle. The target is solopreneurs—carpenters, electricians, plumbers, shop owners, YouTubers—who want to carry things for work but are also stylish individuals,” says Mani, who is also the chief executive officer.
The Indie is priced at Rs1,54,899 (ex-showroom) in Bengaluru, including the PM E-Drive subsidy.
River’s factory in Bengaluru’s Hoskote has the capacity to produce about 10,000 vehicles a month and is running at 65-70 percent utilisation, Mani further says. After the fundraise, the company plans to begin work on a much larger manufacturing facility within the next 45 to 60 days. Talks are underway with two states to identify the location. “The first phase will be commissioned by the middle of next year. Capacity will be around 700,000-800,000, seven to eight times the current factory’s,” says Mani.
River is also preparing to broaden its line-up—it is developing two more scooters, with one scheduled for launch next year and another expected in 2028 or 2029. Both will remain within its utility lifestyle positioning. The company expects to expand its retail network to about 200 stores by March 2027 and around 400 a year later.
Asked what differentiates River from the many startups that have tried to make e-scooters, Mani said it’s the company’s focus. “We are a company that is really good at subtraction. I actively think about what not to do so that we can do what we do well.”
That thinking extends to its manufacturing strategy. “We are possibly the only OEM in the country that does not have variants of the product. We have one model. The only decision the customer has to make is which colour. It also keeps my supply chain and manufacturing simple.”
River is operating at a revenue run rate of about Rs100 crore. Mani expects the company to reach Ebitda profitability once it sells about 25,000 vehicles a month, a milestone he hopes to reach by FY29.
The co-founder called the latest fundraise a “big breakthrough, which will put River on a very different growth trajectory”.
India’s electric two-wheeler investment landscape is significantly more mature today than it was two or three years ago, said Grant Thornton Bharat’s Mehra.
The most important shift, he said, is the evolution of capital allocation. “India’s electric two-wheeler sector is transitioning from a venture-led adoption story to a strategic industrial and technology investment opportunity. Capital remains available, but it is increasingly being directed towards businesses that can build sustainable competitive advantage, execute at scale and deliver long-term profitable growth.
River has the backing of not just institutional investors but global two-wheeler makers as well.
Japanese two-wheeler giant Yamaha has been an investor in River since 2024 and the partnership extends beyond funding. The startup manufactures Yamaha’s EC-06 electric scooter at its Bengaluru factory, with production beginning in 2024.
“River’s focus on building a vertically integrated electric vehicle technology platform has been a key driver of its success. Yamaha are proud to see the progress made by River so far and are excited about being part of the next phase of growth,” Hajime Aota, chairman of Yamaha India Group, said in a statement.
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