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River , an Native American startup manufacturing galvanizing two - wheelers , has raise $ 40 million in a funding round led by Japan ’s Yamaha Motor as the about three - year - previous startup look to increase R&D spending and expand the market bearing of its first galvanic “ SUV ” two - wheeler in India .
The all - equity Series B circle also saw participation from the startup ’s subsist investor , including Al - Futtaim Automotive , Lowercarbon Capital , Toyota Ventures , Trucks VC and Maniv Mobility . With the latest financing , the startup has cumulatively raised $ 68 million in four rounds , admit thelast round of $ 15 millionannounced in June .
Since its founding in March 2021,Riverhas focused on train and producing electric two - wheelers for Indian client , a burgeoning and rapidly germinate market in a state slap-up to replace diesel and gas - powered vehicles with EVs . The large market place chance in the South Asian nation — and the one with the most competition — is the two - bicycler mart . Nearly 50 % of the total EVs sell in the country are two - wheelers with more than 1.7 million on the route today , according to government data .
The startup believe it can stand out and chip at out grocery store share with Indie , a $ 1,700 two - wheeled motor scooter that is large than its competitors . Indie , which River draw as the “ SUV of scooter , ” has a 14 - inch wheelbase and storage blank space magnanimous enough to hold two helmet and cargo weighing up to 33 pound . electrical two - wheelers from the startup ’s rivals — let in those from SoftBank - led Ola Electric and Tiger Global – back Ather Energy — have a 12 - column inch wheel size of it and storage for a single helmet .
This utility program - life style - focused product was born out of calendar month in R&D at a dedicated facility in Bengaluru . The company has turn in close to 200 units since launching sales in October from its first retail store in the southerly city .
Its aspiration are far larger , however . The scooters are manufactured at a 120,000 - substantial - foot factory on the outskirt of Bengaluru that has an one-year production capacity of 100,000 units ( 9,000 building block a calendar month ) . River aver it plan to increase cut-rate sale to 300 scooter a calendar month in March and 3,000 unit a month by the end of 2024 .
“ By the clock time we are a five - class - old company in March 2026 , we want to be in 100 cities and come to a scale of measurement of selling around 9,000 vehicles a calendar month , which is just about $ 200 million in dollar volume , ” Aravind Mani , Centennial State - founding father and CEO of River , said in an audience .
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To achieve its destination , the startup plans to establish a allocator meshwork that will finally handle 90 % of its sales .
Mani told TechCrunch the startup began involution with some dealers and is initially looking to have distributors in 10 cities , include Ahmedabad , Chennai , Hyderabad , Mumbai and Kochi .
“ We are having discussions with dealer for enlargement , ” he say . “ We will also do more party - possess stores , depending on strategical localization . ”
Mani co - found River with Vipin George ( master mathematical product officer ) , previously working as a chemical group head clothes designer at Honda in India . The distich has deploy over $ 25 million in R&D and manufacturing in the first two and a one-half years and is now look to surmount River ’s distribution , fabrication and service meshwork across the rural area , as well as work toward strengthening its R&D and draft the blueprint for its next production , which Mani say would come after the inauguration progress to to around 30 cities by March 2025 and 100 cities by March 2026 .
“ We have a duet of product in psyche . But we do not know what we will prioritize and launch first yet . However , I can tell you that any Cartesian product we do will be within this fussy purview of utility , ” Mani said .
After raising the first two rounds of funding from fiscal investors , Mani said River started to swivel to strategic investments . The first such investment came last yr from Dubai ’s Al - Futtaim Group , which is not just a large Middle Eastern pudding stone but also an exclusive Toyota distributor in the UAE that be about 29 brands in around 14 nation .
The relationship could give River access to a global distribution mesh once it builds its presence in India . A standardised eccentric could be with Yamaha Motor .
“ With Yamaha coming on board , there is also a strategic apprehension to perchance collaborate on product wrinkle , but we do n’t have classical understanding yet in position , or how that quislingism will look likewise is not something that we have definitely concord on . So , at this time , it ’s a arrant - gaming financial investiture with the potential to get together more , ” the co - founder note .
That said , River , which has 450 employees , of which 250 are in R&D , attempt to use the partnership with Yamaha Motor to leverage its design and technology capability . Yamaha appears to have been sell on the company ’s R&D efforts .
“ We are impress by the progress that River has achieved in such a short duet of time , especially with the secure focus on design and engineering . We are excited about the conviction that Aravind and Vipin have for River and how Yamaha can support the company to attain this , ” Hajime “ Jim ” Aota , main general manager of New Business Development Centre at Yamaha Motor Company , enounce in a statement .
Mani did not expose the evaluation of the inauguration , though he mentioned “ a pregnant increase in valuation , multiples of 10 , ” since itsseed round in 2021 . He also express with the fresh funding , the startup has enough capital to last for two years .
The startup projects to reach staring leeway gainfulness with 2,000 monthly units in 8 to 10 month . Bottom - seam profitability would take a piddling longer , harmonise to the Centennial State - laminitis .
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