Indian electric vehicle startup River announced on Wednesday that it raised $120 million to scale manufacturing for its next phase of growth. The Series C funding round was led by Indian investors Elev8 Venture Partners and Claypond Capital. Participation also came from Singularity AMC, Anicut Capital, 360 ONE Asset, JIF Capital, and HDFC AMC. Existing backers Yamaha Motor, Al-Futtaim Group, and Mitsui also joined the round.
Founder and CEO Aravind Mani told TechCrunch that less than 10% to 12% of the round comprised venture debt. The equity funding raised was entirely primary capital with no secondary share sales. This new financing brings River's total capital raised to $144 million. Mani noted that the latest round marks a shift in investor focus from supporting early product development to backing the startup's ability to scale.
Founded in 2021, River operates in India's expanding electric two-wheeler market. The company competes with newer entrants like Ather Energy and Ola Electric, alongside legacy manufacturers Bajaj Auto and TVS Motor. Unlike many rivals, River built its business around a single electric moped model named Indie, which launched in 2023. The startup sells roughly 6,000 vehicles a month through more than 75 stores across India and has sold over 50,000 units total.
Mani stated that River positioned the Indie as a utility-focused vehicle for self-employed customers aged between 28 and 35. The Indie is priced at ₹155,000, which equals about $1,630, and offers a claimed range of roughly 99 miles. Driven by rising sales of the model, River's revenue increased by 330% in the fiscal year ended March 2026. Monthly revenue reached approximately ₹1 billion, or around $11 million.
River currently produces 300 vehicles a day compared to 20 vehicles a day previously. The startup's first manufacturing facility on the outskirts of Bengaluru can now produce about 10,000 vehicles a month following recent upgrades. River expects to fully utilize this plant by early next year. Construction on a new facility will begin within the next two months once the location is finalized. The first phase of the new plant is slated for commissioning by mid-2027 with an annual capacity of 700,000 to 800,000 vehicles.
The single-model focus has helped River gain market traction, but the company plans to introduce two more models starting next year. Mani explained that current factory capacity restricts adding another model today. River also plans to expand its retail footprint to more than 200 stores by March 2027 and grow to about 400 outlets by March 2028.
River expects to achieve operational profitability once monthly production reaches 20,000 to 25,000 vehicles, a target Mani aims to hit by 2028 to 2029. Gross margins are currently approaching double digits and should improve as production scales. The startup will soon begin construction on its new manufacturing facility to support these upcoming production and model expansion goals.
