E-scooter maker River raises funds. Will it beat Ola Electric?
H. Karan Kumar
Updated on Sept 19, 2023 | 6 min read
In a recent development in the electric vehicle (EV) industry, Indian startup River has successfully raised $40 million in Series B funding. The funding round was led by Yamaha Motor Co Ltd, Japan, with participation from existing investors such as the Al Futtaim Group, Lowercarbon Capital, Toyota Ventures, and Maniv Mobility. This significant investment will enable River to expand its distribution and service networks across India and invest in research and development for future product developments.
Aiming for Expansion and Positive Unit Economics
River, a new-age e-scooter startup founded in 2021, has set its sights on scaling up its monthly sales from 100-150 units to approximately 1,000 units. The company also aims to achieve positive unit economics soon. The funds raised in the Series B round will play a crucial role in achieving these goals.
River Indie vs Ola S1 Pro
| Feature | Ola S1 Pro Gen 2 | River Indie |
| Starting Price | ₹129,999 | ₹138,000 |
| Subsidy Eligibility | Yes | Yes |
| Range (claimed) | 195 km | 120 km |
| Battery Capacity | 4 kWh | 3.24 kWh |
| Motor Power | 8.5 kW | 6.7 kW |
| Top Speed | 115 kmph | 95 kmph |
| Acceleration (0-40 kmph) | 3.9 seconds | 3.95 seconds |
| Charging Time (0-100%) | 6.6 hours | 4.5 hours |
| Fast Charging Support | Yes | Yes |
River’s Total Funding and Growth Prospects
With the Series B funding, River has raised $68 million (approximately ₹565 crore) since its inception. The funding will fuel the company’s growth plans, including expanding its distribution and service networks and investing in research and development for upcoming product developments. River aims to capitalize on the growing demand for electric vehicles in India and establish itself as a critical player in the EV market.
USP of River Indie
River’s success can be attributed to its focus on design, technology, and product quality. With its sleek design and advanced features, the Indie has garnered attention from both Indian and international markets. River’s emphasis on superior design and technology sets it apart from its competitors and positions it for future growth.
Collaboration with Yamaha and its Significance
The partnership with Yamaha Motor Co Ltd provides significant strategic advantages for River. Yamaha’s expertise in the automotive industry, particularly in the two-wheeler segment, will enhance River’s design and technology capabilities. The collaboration will also open doors to new opportunities and potential synergies between the two companies.
Future Outlook for River and the EV Industry
As the demand for electric vehicles continues to rise, River is well-positioned to capitalise on this trend. The company’s strong financial backing, innovative product offerings, and expansion plans bode well for its future growth. River’s focus on achieving positive unit economics and scaling up its monthly sales will contribute to its success in the competitive EV market.
Conclusion
River’s successful Series B funding round marks a significant milestone for the e-scooter startup. With the backing of prominent investors, including Yamaha Motor Co Ltd, River is poised to expand its presence in the EV market. The funds raised will fuel the company’s growth plans, including expanding distribution and service networks and research and development for future product developments. As the demand for electric vehicles continues to surge, River’s focus on design, technology, and superior product offerings positions it for success in the rapidly growing EV industry.
