By Saikeerthi .
Aug 5 (Reuters) – India’s River Mobility has raised $120 million, the electric vehicle startup said on Wednesday, aiming to expand its portfolio and build a new manufacturing facility to capitalise on growing EV demand.
India’s EV market received a shot in the arm this year due to rising fuel prices from the Middle East war and growing consumer demand for cleaner transport.
The Yamaha Motor Co-backed River Mobility plans to use the Series C funding to expand its factory in the southern Indian state of Karnataka. It will also build a new plant with a production capacity of up to 80,000 scooters a month, compared with 10,000 at its existing facility, CEO and co-founder Aravind Mani told Reuters.
The company, founded in 2021, has sold 27,533 units of its Indie electric scooters as of July this year, according to data from the government’s transport portal Vahan.
The company expects annual sales to more than double, or potentially triple, from the 28,000 units sold in 2025.
Though still a smaller player, River Mobility is jostling for space with heavyweights such as Ather Energy as well as established players with wider distribution networks such as TVS Motor and Bajaj Auto in the country’s fastest-growing EV segment.
The firms make up the top three spots in India’s EV two-wheeler market in terms of sales. Ather, founded in 2013, has sold 200,121 units across models as of July this year, while TVS and Bajaj have sold 307,760 and 263,959 units, respectively, Vahan data showed.
River Mobility also plans to launch a second premium utility electric scooter by mid-2027 and is developing a third model.
The company’s revenue more than quadrupled in fiscal 2026, according to Mani, who did not disclose the actual figure as the accounts are still being audited.
It reported revenue of about 1 billion rupees ($10.48 million) in fiscal 2025.
Elev8 Venture Partners and Claypond Capital led the funding round, comprising more than 85% of equity and debt for the remainder. Existing investors including Yamaha Motor Co, Al-Futtaim Group and Mitsui & Co also participated.
($1 = 95.3775 Indian rupees)
(Reporting by Saikeerthi in Bengaluru; Editing by Chandini Monnappa and Janane Venkatraman)
