EV Startup River Raises $11 Mn to Start Electric Scooter Next Year

This round was run by Lowcarbon Capital, with participation from Toyota Ventures

River intends to invest the funds in expanding the team as well as creating a manufacturing facility close to Bengaluru

The company is currently in discussions for a second $100 million and plans to raise the money prior to the time it can begin selling its two-wheelers.

Bengaluru-based electric mobility company River is able to raise $11 million from investors that are which was led by Lowcarbon Capital, a US-based fund for VC founded managed by Chris Sacca, an early-stage investor in Twitter, Uber and Instagram. Toyota Ventures also participated in the round of funding.

The cofounder of River, Aarvind Mani the cofounder of River, an ET report revealed that River, an EV startup plans to use the money to increase the team, fund R&D and build manufacturing facilities. Most importantly, River plans to launch its first product by the end of next year.

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In 2020, River was founded with Mani as well as Vipin George in 2020, River is competing against other companies like Ola Electric, Okinawa, Aether Energy and others in the rapidly growing two-wheeler EV market in India. River’s cofounder Mani was quoted in the report mentioned above in which he said that the company is seeking to raise an additional $100 million, and is planning to raise the money before offering its 2-wheelers.

The company is designing the scooter for the purpose of carrying heavy loads. According to Mani that a significant portion of Indian market purchases two-wheelers to transport the burden. River asserts that it is developing an electric scooter to take over the pick-up truck culture of the West suggesting an electric vehicle will be equipped with a significant capacity for carrying loads.

The startup will , therefore, focus on a segment that is growing rapidly in India that is last-mile delivery.

But, pointing out that one should not utilize the escooter exclusively to deliver, Mani said, They are not buying an item thinking they’ll only use it for delivery, therefore we’re exploring ways we can make something that can be used for many things.

The company that is a pioneer in electric mobility did not provide any information regarding the vehicle, but it is trying to establish an manufacturing facility. The ET report said that the company’s first manufacturing facility will be built close to Bengaluru and will produce 10,000 vehicles per month. The company is also planning to operate a distributor model , with designated service points.

India has seen a small rise on EV enrollments during July which saw Hero Electric topping the charts. Although EVs are advertised to be the new mobility option, consumers’ worries about performance, range and recent fires have led to the decline in demand for a few EV players.

To resolve one of the major issues associated with EVs which is that of batteries, authorities launched the PLI scheme to produce advanced cell chemical (ACC) within the country.

It is the PLI scheme, which is worth INR 18,100 crore has seen involvement from Ola Electric, Rajesh Exports and Reliance New Energy Ltd. In total, the three companies will produce 95 gigawatt-hours (GWh) in energy storage capacity.

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