Yamaha invests in EV Startup River instead of making one
H. Karan Kumar
Updated on Sept 19, 2023 | 6 min read
Electric vehicles (EVs) are revolutionising the transportation industry, and India is at the forefront of this transformation. With the aim to replace traditional diesel and gas-powered cars with EVs, Indian startup River has caught the attention of global investors. River, a manufacturer of electric two-wheelers, recently secured a $40 million funding round led by Japan’s Yamaha Motor. This investment is expected to fuel River’s ambitious rollout of its electric “SUV” two-wheeler, Indie, in the Indian market.
The Rise of River and the Indian EV Market
River, founded in March 2021, has quickly gained traction in the Indian market by focusing on its USP and developing and producing electric scooters in India for Indians. In a country where two-wheelers make up nearly 50% of the total EV sales, River aims to stand out with its innovative product offerings. The Indian government’s push for EV adoption and the increasing demand for sustainable transportation presents a significant opportunity for River to capture market share.
The Indie: A Game-Changing Electric Scooter
The Indie, a utility-lifestyle-focused electric scooter, is at the heart of River’s success. Unlike its competitors, including SoftBank-led Ola Electric and Tiger Global-backed Ather Energy, the Indie differentiates itself with its larger size and storage capacity. With a 14-inch wheelbase and ample storage space for two helmets and cargo weighing up to 33 pounds, the Indie positions itself as the “SUV of scooters.”
The Indie’s unique features result from months of research and development at River’s dedicated facility in Bengaluru. Since its launch in October, River has sold close to 200 units from its first retail store in the southern city. This initial success has set the stage for River’s ambitious plans to scale up production and expand its market presence.
Scaling Production and Market Presence
River operates a 120,000-square-foot factory on the outskirts of Bengaluru to meet the growing demand for its electric two-wheelers. With an annual production capacity of 100,000 units, River aims to increase its sales to 300 scooters per month by March and 3,000 units per month by the end of 2024. The company’s co-founder and CEO, Aravind Mani, envisions River being present in 100 cities and achieving a turnover of approximately $200 million by March 2026.
River is establishing a distributor network to support its expansion plans, which will eventually handle 90% of its sales. The startup is currently discussing with dealers in cities like Ahmedabad, Chennai, Hyderabad, Mumbai, and Kochi. In addition to distributors, River is also considering opening more company-owned stores strategically located throughout the country.
Strategic Investments and Collaborations
River’s growth trajectory has attracted strategic investments from prominent players in the automotive industry. In addition to Yamaha Motor, the startup’s Series B funding round saw participation from existing investors such as Al-Futtaim Automotive, Lowercarbon Capital, Toyota Ventures, Trucks VC, and Maniv Mobility. These investments provide financial support and pave the way for potential product development and distribution network collaborations.
The partnership with Yamaha Motor holds particular promise. While the specifics of the collaboration are yet to be defined, River sees the potential for leveraging Yamaha’s design and technology capabilities. By harnessing Yamaha’s expertise, River aims to enhance its electric two-wheelers further and strengthen its position in the Indian market.
River Inde At a Glance:
Specifications:
Inde | Specification |
Range | 120km real world |
Top Speed | 90km/h |
Charging time | 5 hours |
Battery | 4kWh |
Motor | 6.7kW (PMSM) |
Charging cost | 4 units |
Fast charging | No |
Acceleration | 0-40 in 3.7 sec |
River Inde Price & Warranty:
With a 4kWh battery and 120kms range, the River Inde E-Scooter is priced at an ex-showroom price of ₹1,25,000 with the state subsidy. The price may go further down with the added state subsidy. (The given price is without FAME 2 subsidy after subsidy, the price may go down further.)
River Inde Warranty:
The company usually provides a 5-year or 50,000km warranty on batteries and 5yr or 50,000 km warranty on electric components like BMS, motors, etc.
The warranty does not cover the physical damages. Only the technical issues and electrical faults in the scooter are covered.
A Sustainable Future for Electric Two-Wheelers in India
River’s success and the investment from Yamaha Motor symbolise the growing momentum of the EV revolution in India. As the country seeks to reduce its carbon footprint and transition to sustainable transportation, electric two-wheelers play a pivotal role. With its innovative product offerings and ambitious growth plans, River is poised to impact India’s EV market significantly.
The investment from Yamaha Motor provides River with the necessary capital and opens doors to potential collaborations and global distribution networks. As River expands its market presence and solidifies its position as a leading player in the Indian EV industry, the future looks bright for the startup and the country’s sustainable transportation ecosystem.
