Electric vehicle player River has raised $15 million in a fresh funding round led by Dubai-based conglomerate Al Futtaim Group with participation from existing investors Lowercarbon Capital, Toyota Ventures, Maniv Mobility, and Trucks VC.
"This fundraise is mainly for our working capital needs. Setting up distribution centres, working capital for starting local sourcing and manufacturing of parts for EVs and also for R&D," said Aravind Mani, Cofounder and CEO of River in an interaction with Moneycontrol
The fresh funding will be also utilised by the firm towards River's growth, priming its manufacturing and distribution networks for the August 2023 delivery that it had earlier announced, the firm said in a media statement on Tuesday.
Bengaluru-based River was founded in 2021 by Aravind Mani and Vipin George. River directly competes with Ola and Ather and has launched its first EV for consumers called 'Indie' which starts at Rs 1.25 lakh.
However, after the Indian government announced that the subsidy for EVs will be removed from June 1, 2023, EV makers are mulling to increase prices.
"There is going to be a price increase for sure. This subsidy slashing has prompted other players also to think about a price hike we will also follow suit," Mani said.
The move will also promote more manufacturing within India, he added.
"This is a sign of industry maturing and we need to practise without the subsidy. We are already sourcing our inputs locally and this will only further improve domestic manufacturing," he noted.
River is also looking to increase its capacity gradually going ahead. Its overall installed capacity is around 100,000 EVs per annum.
"We want to get to a point of making 60,000 units per annum by this year, which is around 5000 units per month and then reach the full capacity by the end of 2024," Mani said.
The company is planning to start distributing its scooter by the end of August this year in Bengaluru and four more cities.
"At River, we've been quietly working in the background for the last two years. In just 20 months, we launched our first product, the Indie, which has by now successfully covered 100,000+ kilometers in testing. Now we’ve set the base to build a billion-dollar business and we thank all our investors for supporting us in our journey," said Mani, Cofounder and CEO of River.
The new funding marks River's third round, following a $2 million seed round in March 2021 and a $11 million Series A round in July 2022. Notably, River is the sole Indian investment for Al Futtaim group, Toyota Ventures, Trucks VC, and Maniv Mobility.
“We evaluated over 50 electric two-wheeler start-ups, and are impressed by the team’s vision and relentless commitment to in-house product development. I am confident that their products will see great success, in India and internationally," said Paul Willis, President of Al Futtaim Automotive.
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