Yamaha Acquires Stake In Electric Two-Wheeler Startup River With Over $20 Million Investment

Bengaluru-based River has raised a total of $40 million (Rs 333 crore) in its Series B round led by Yamaha and existing investors.

By Amaan Ahmed

2 mins read

Published on February 6, 2024

Highlights

EV startup River raises $40 million in Series B funding, with Yamaha Motor Co contributing over $20 million.
With this investment, Yamaha is ‘seeking new business partnerships together with River in India's EV market’.
River plans to expand its sales and service network, and develop future products, with the freshly secured funds.

Electric two-wheeler start-up River has received its biggest vote of confidence yet, attracting investment from one of the world’s largest two-wheeler manufacturers – Yamaha Motor Company. The Japanese motorcycling giant has poured in over $20 million – or about 60 per cent – into the Bengaluru-based firm’s Series B round, which drew a total investment of $40 million (approx. INR 333 crore), including from existing investors Al Futtaim Group, Lowercarbon Capital, Toyota Ventures and Maniv Mobility. This round pushes cumulative funds raised by River to $68 million (approx. INR 565 crore) since its inception in March 2021.

Also Read: River Opens Its First Retail Store In Bengaluru

While on the face of it, this is purely a financial move, Yamaha has made it clear that with the investment in River – founded by Aravind Mani and Vipin George – the company, which presently has no battery-powered offerings in its India portfolio, is keen on forging a new path in India’s fast-evolving electric two-wheeler space.

‘Through this investment in River, Yamaha Motor is seeking new business partnerships together with the company in India's EV market’, read Yamaha’s statement.

Deliveries of the Indie began in Bengaluru late in 2023.

Commenting on the investment, Hajime “Jim” Aota, Chief General Manager of New Business Development Centre, Yamaha Motor Co., Ltd., said, “We are impressed by the progress that River has achieved in such a short span of time, especially with the strong focus on design and technology. We are excited about the conviction that Aravind and Vipin have for River and how Yamaha can support the company to achieve this.”

Also Read: River Indie E-Scooter Price Hiked By Rs 13,000; Bookings Reopen

River first unveiled its maiden product, the utility-focused Indie electric scooter, in February 2023, at a pre-launch price of Rs 1.25 lakh. Deliveries of the Indie began late in 2023, and the startup has delivered close to 150 scooters in Bengaluru till date, as per the latest vehicle registration data on the VAHAN portal. The price of the Indie has now been revised to Rs 1.38 lakh (ex-showroom).

With the freshly-secured funds, River says it intends to develop future models, and expand its sales and service network across India. At present, the startup has a single outlet in Bengaluru, which was opened in January 2024, and more such outlets will be opened, initially in southern India, over the course of 2024.. River has previously said it is targeting production of 5,000 units a month by 2025.