River Mobility Raises $120 Million in Series C Round

River Mobility, a Bengaluru-based electric two-wheeler manufacturer, has closed a $120 million Series C funding round comprising equity and venture debt, in what ranks among the larger private funding rounds in India's electric two-wheeler sector.

The equity portion of the round was led by Elev8 Venture Partners and Claypond Capital, with participation from Singularity AMC, Anicut Capital, 360 ONE Asset, JIF Capital and HDFC AMC. Venture debt came from Alteria Capital, Innoven Capital and Stride Ventures. Existing investors Yamaha Motor Corporation, Al Futtaim Group and Mitsui & Co. also participated.

The round marks River Mobility's first significant investment from Indian institutional investors. The company's broader investor base includes Yamaha Motor Co., Marubeni Ventures, Mitsui & Co., Al-Futtaim Group, Lowercarbon Capital, Toyota Ventures, Maniv Mobility and JIF Capital.

River Mobility plans to use the capital to increase capacity at its existing factory, build a new greenfield manufacturing facility, launch products in the utility lifestyle segment, and improve gross margins and EBITDA profitability.

Founded in March 2021 by Aravind Mani and Vipin George, the company launched its first product, the River Indie electric scooter, in 2023. Monthly sales have since grown to 5,000 units. The company currently operates more than 75 stores across India and has set a target of over 350 stores by March 2028.

"This capital gives us the ability to accelerate our product roadmap, expand our manufacturing footprint and presence across the country," said Aravind Mani, co-founder and CEO of River Mobility.

Navin Honagudi, Managing Partner at Elev8 Venture Partners, cited the company's product positioning as a key factor in the investment decision. "River stands out for its sharp product thinking, exceptional execution capability, and a highly differentiated positioning in the market," he said.

Sekhar Garisa, Managing Director at Claypond Capital, pointed to the company's growth in a competitive segment. "River has combined disciplined execution and thoughtful product differentiation to rapidly grow and garner customer love in a competitive market," he said.

Hajime Jim Aota, Chairman of Yamaha India Group, noted the company's vertical integration approach. "River's focus on building a vertically integrated electric vehicle technology platform has been a key driver of its success," he said.

India's electric two-wheeler market has seen rising sales volumes in recent years, driven by fuel cost considerations, government incentives and a widening range of available products. River Mobility competes in a segment that includes both domestic manufacturers and subsidiaries of established two-wheeler companies.

The company says it plans to introduce additional products in the coming years as it looks to build out its position in the market.