Electric scooter maker River on Tuesday said it has raised $40 million in a Series B funding round led by Yamaha Motor Co to scale its distribution and service network and ramp up R&D for future products.
Its existing investors Al Futtaim Group, Lowercarbon Capital, Toyota Ventures, and Maniv Mobility also participated in the round.
River started selling its first product, Indie, which it calls the ‘SUV of scooters’, in October. The product was designed and developed at its R&D facility in Bengaluru and manufactured at its factory on the outskirts of Bengaluru. The first River store opened in Bengaluru last month.
The firm claims that River is the first India investment for all its investors — Tel Aviv-based Maniv Mobility, San Francisco-based Trucks VC, US entrepreneur Chris Sacca’s Lowercarbon Capital, Toyota Ventures, and Dubai-based conglomerate Al-Futtaim Automotive.
Yamaha has invested in other Indian firms including two-wheeler ride-hailing firm Rapido; and CredR, an online marketplace for second-hand bikes.
This round takes the cumulative funding raised by River to $68 million since its inception in March 2021.
“We also see strong potential for Indie in many international markets. We are excited about the next phase of growth for River both inside and outside India,” said Paul Willis, CEO of Al-Futtaim Automotive.
River’s funding is the most recent example of rising investor interest in India’s EV market, with a raft of startups such as BluSmart, Ather Energy, Exponent Energy, Altigreen, Ola Electric, BOLT, and Baaz Bikes raising funds from investors including corporate VCs and automakers.
Given the rise in petrol and diesel prices in India and awareness about the environment, more consumers are opting for electric vehicles. Mass EV adoption, however, faces a huge challenge in the area of battery-charging technology and infrastructure.
From deep-pocketed players such as Reliance Industries, Tata Group, and Suzuki to legacy battery businesses such as Amara Raja and Exide and new entrants like Log9, Godi, and Nsure, everyone is planning to build lithium-ion cell factories in India, a move that could help India manufacture cells locally.
Currently, India imports 100% of its lithium-ion batteries, either as cells or as battery packs, with some players integrating these cells and selling them.