The company is looking at annualised returns of close to US$ 100 million by the end of 2024.
06 Jun 2023 | 5911 Views | By Amit Vijay M and Radhika Dave
Bengaluru-based electric vehicle startup River has secured US$15 million in its latest fund raise, led by UAE-based conglomerate Al Futtaim Group, with participation from existing investors Lowercarbon Capital, Toyota Ventures, Maniv Mobility, and Trucks VC. This latest capital raise brings the company’s total funding to US$28 million. It has a ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
Bengaluru-based electric vehicle startup River has secured US$15 million in its latest fund raise, led by UAE-based conglomerate Al Futtaim Group, with participation from existing investors Lowercarbon Capital, Toyota Ventures, Maniv Mobility, and Trucks VC. This latest capital raise brings the company’s total funding to US$28 million. It has a target of achieving 5,000 units a month, by 2024, and is looking at annualised returns of close to US$ 100 million by 2024 end.
In July 2022, the company raised US$ 11 million in Series A, led by Lower Carbon Capital, with participation from Toyota Ventures, Israel-based Maniv Mobility and San Francisco-based Trucks VC. The company had raised its seed round in March 2021, from mobility-focused venture capital funds including Maniv Mobility and Trucks VC.
The company, which will utilise the latest funds for R&D, and rolling out new products, said that funding is an ongoing process and the company is looking to go public in the next 5 years. It aims to roll out its first product by this August in Bengaluru, and expand to 3-5 cities by the end of this year. "At River, we've been quietly working in the background for the last two years. In just 20 months, we launched our first product, the Indie, which has by now successfully covered 100,000+ kilometres in testing. Now we’ve set the base to build a billion-dollar business and we thank all our investors for supporting us in our journey," commented Aravind Mani, Co-founder and CEO at River.
Mani said that the strategy for Indie is to concentrate on the utilitarian lifestyle category, adding that the company will follow a hybrid approach. It will have both, company owned and operated stores as well as dealerships. In Bengaluru they will start with company owned and operated stores, and they will also scale up to dealerships.
He said that the new product would include the slashed FAME 2 subsidy, which Mani hailed as a welcome move, as ‘it will help further localise the Indian (automotive) industry. Being tight-lipped on the price, he said he would see that by how much the prices would be passed onto the customers. Hinting at an upcoming round the next year as well, he said that every year they have been doing one round, and next year too, there will be another round, saying they are already engaged with a bunch of investors.
Vipin George, Co-founder and Chief Product Officer at River, added, “Indie is unlike anything in the market today. We designed Indie keeping in mind the Indian lifestyle, our roads, and usage patterns. Indie is loaded with unique features like 14” inch wheels, crash guards, and front foot-pegs, features that offer great utility and riding experience.”
Paul Willis, President of Al Futtaim Automotive said, “We evaluated over 50 electric two-wheeler start-ups, and are impressed by the team’s vision and relentless commitment to in-house product development. I am confident that their products will see great success, in India and internationally.”
Jim Adler, founder and general partner of Toyota Ventures, an existing investor, also expressed confidence in the company, noting that, “River is our first investment in India, and we’re amazed at River’s progress and look forward to seeing them continue to execute on their vision of delivering quality, durable, affordable, and stylish all-electric two-wheeled vehicles.”
According to company officials, The River Indie can accelerate from 0 to 40 km/h in just 3.9 seconds and has a peak speed of 90 km/h. It has three driving settings: Eco, Ride, and Rush. It has a peak power of 6.7 kW (9 bhp) and a maximum torque of 26 Nm.
Its 4 kWh battery is said to have a 120-kilometer range. The scooter has a quick charging feature and can be charged up to 80% in five hours.