Bengaluru-based electric two-wheeler startup River is reportedly in advanced discussions to raise approximately $80 million (around ₹720 crore) in a fresh funding round, as it looks to accelerate growth in India’s rapidly expanding electric mobility market.
According to industry sources, the upcoming round is expected to see participation from prominent venture capital firms, including A91 Partners, Elev8 Venture Partners, and Claypond Capital, the family office of Manipal Group Chairman Ranjan Pai. If finalised, the funding would mark one of River’s largest capital raises to date and significantly strengthen its balance sheet.
Backing Growth and Expansion
The potential capital infusion comes at a time when River is scaling up its manufacturing and market presence. The startup recently crossed the milestone of producing over 20,000 electric two-wheelers, reflecting steady demand for its products and growing operational maturity.
River has also secured a position among India’s top 10 electric vehicle brands by monthly sales, a notable achievement in a market dominated by established players such as Ola Electric, TVS Motor, Ather Energy, and Bajaj Auto. This performance underlines the company’s ability to carve out a niche despite intense competition.
Focus on Product and Infrastructure
Founded in 2021 by former Ather Energy executives, River entered the market with its flagship electric scooter, the Indie, positioned as a “SUV of scooters” with a focus on utility, durability, and long-range capability. The model has gained traction among urban commuters and delivery partners, particularly in metro cities.
With fresh funding, River is expected to invest in expanding production capacity, strengthening its dealership and service network, and enhancing its charging and digital infrastructure. The company may also channel resources into research and development to support future product launches.
Investor Confidence in EV Potential
The interest from leading investment firms reflects sustained confidence in India’s electric two-wheeler segment, which continues to witness strong adoption driven by rising fuel costs, supportive government policies, and improving charging infrastructure.
A91 Partners and Claypond Capital have previously backed several high-growth technology and consumer companies, while Elev8 Venture Partners has been actively investing in mobility and sustainability-focused startups. Their participation would further validate River’s long-term strategy and execution capabilities.
Competitive Landscape Ahead
While River’s progress has been impressive, the road ahead remains challenging. Price competition, subsidy uncertainties, and evolving regulatory norms continue to shape the EV market. Larger rivals are also stepping up investments in product development and marketing, intensifying the battle for market share.
Nevertheless, with rising brand recognition, improving scale, and strong investor interest, River appears well-positioned to strengthen its foothold in India’s electric two-wheeler space.
If concluded successfully, the $80 million funding round could provide the startup with the financial firepower needed to accelerate nationwide expansion and compete more aggressively in one of the world’s fastest-growing EV markets.
