According to the press release, Yamaha’s investment is for the Series B funding round of River via third-party allotment.
River reportedly secured $40 million in the funding round, which the Japanese automaker led.
River, an almost three-year-old Indian EV startup, aims to utilize the funds to increase its Research and Development (R&D) expenditures and boost the market presence of its inaugural electric “SUV” two-wheeler in the Indian market.
Apart from Toyota, River’s existing investors also participated in the Series B funding round, including Al-Futtaim Automotive, Lowercarbon Capital, Toyota Ventures, Trucks VC and Maniv Mobility.
The fresh $40 million enabled the Indian startup to accumulate a total of $68 million in four rounds, including the prior funding round of $15 million announced in June.
As mentioned, River is an electric vehicle startup established in March 2021. It focuses on the development, production, and sale of electric scooters.
The company built River Mobility Private Limited as a group company in Bengaluru to market electric scooters with high-quality build and design.
River is optimistic that its $1,700 two-wheeled scooter Indie can enable it to dominate the country’s two-wheeler EV segment. India is larger than most of its rivals in the market, with the company defining it as an “SUV of scooters.” It features a 14-inch wheelbase and supports up to 33 pounds of cargo capacity. Since Indie’s launch in October 2023, River has sold nearly 200 units from its retail store in Bengaluru.
“By the time we are a five-year-old company in March 2026, we want to be in 100 cities and come to a scale of selling around 9,000 vehicles a month, which is approximately $200 million in turnover.”
Aravind Mani, co-founder and CEO of River, said in an interview (via (TechCrunch)
India’s two-wheeler electric vehicle industry continues to rapidly expand owing to its enormous population and dense urban environment, posing the largest possible market opportunity.
In fact, the local electric two-wheeler market accounts for almost 50% of the overall EV sales in India. As of today, the country has sold over 1.7 million two-wheeler EVs.
All that said, it is unsurprising that Yamaha decided to bet on the country’s two-wheeler EV industry by investing in a local brand.
Even more, River’s Indie two-wheeler EV offers a competitive option for local customers, featuring a 56 mph top speed and 75 miles single-charge range for $1,700.
This investment will undoubtedly aid Yamaha in achieving its Environmental Plan 2050, which includes 90% CO₂ emission reduction in its value chain from 2010 levels.