Bengaluru EV startup River in talks for $80 million investment from A91 Partners, Claypond Capital and Elev8

Aravind Mani, Co-Founder _ Chief Executive Officer, River

• River in talks to raise $80 million, valuing the startup at $200 million
• Funds to launch new EV models, expand stores, and build a manufacturing plant
• River sold 2,574 units in January, up 321 percent year-on-year

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Electric two-wheeler startup River is in advanced discussions to raise around $80 million (Rs 720 crore) from A91 Partners, Claypond Capital (Ranjan Pai), and Elev8 Venture Partners, according to sources.

The round values River at around $200 million, they added.

About $60 million is expected from new investors, and the remaining $20 million will come from existing backers. The fundraise is being run by The Rainmaker Group (TRMG).

While River declined to comment on the developments, A91 Partners, Elev8 Venture Partners, Claypond and TRMG did not reply to Moneycontrol’s queries.

Who are River's existing investors? 

For River, founded in March 2021 by Aravind Mani and Vipin George, this will be the first fundraise where Indian investors will take large positions. So far the company has been backed by large international funds.

Its current backers include three investors from Japan: Yamaha Motor company, Marubeni Ventures and Mitsui & Co.

Dubai-based Al-Futtaim Automotive, climate-tech focused Lowercarbon Capital, started by longtime investor Chris Sacca and his wife Crystal Sacca, San Francisco-based Toyota Ventures, the early-stage venture capital arm of global automobiles company Toyota and Maniv, an investor from Tel Aviv are the other backers of River.

Once complete, this will also be River’s largest fundraise since being founded. It has so far raised over $60 million across different rounds. The ongoing discussions are for its Series C round.

What will River use the fresh funds for?

River plans to use the capital to launch new EV models, expand distribution, and set up a new manufacturing plant. The company currently operates 40+ stores and aims to scale to 350+ by March 2028.

What are River’s revenues?

The Bengaluru-based firm delivers about 3,000 EVs a month and expects to close FY26 with around Rs 500 crore in revenue, up nearly 5x from FY25. Losses stood at Rs 196 crore in FY25.

For the Bengaluru-based firm, the revenues are likely to increase on the back of new launches.

In earlier media interviews, River’s co-founder and CEO Aravind Mani had said River will launch at least one new model each year starting FY27.

River currently has just one model, the River Indie, priced at around Rs 1-1.5 lakh, which competes with Ather’s 450 series, Bajaj’s Chetak, TVS’ iQube, Hero Vida, Simple Energy and more.

On January 12, River Mobility announced that the firm is manufacturing the Yamaha EC-06 electric two-wheeler in Karnataka .

India's EV Two-wheeler Market

The funding comes at a time when India’s electric mobility story continues to gather momentum.

India’s electric two-wheeler (e2W) market kicked off 2026 on a strong note, clocking a 12% year-on-year increase in sales in January, even as a few manufacturers grappled with headwinds. Government's Vahan data shows that total e2W volumes reached 1,10,316 units during the month, up from 98,427 units in January 2025.

Currently, TVS, Ather and Bajaj are the top three players in terms of market share. Ola Electric, which once dominated the market with monthly sales of over 20,000 units, experienced a significant decline in sales in January of 2026 dropping to monthly sales 7,512 units and falling to the fifth position in the Indian electric two-wheeler market.

River ranks seventh among OEMs in January. The company sold 2,574 units during the month, a 321 percent jump from 611 units a year ago, when volumes were low. This also marks River’s highest-ever monthly Indie deliveries.

Overall, the broader EV ecosystem continues to attract investor interest.  A recent report by data firm Tracxn said that India’s electric mobility sector raised $1.4 billion in 2025, marking a 27 percent increase from the $1.1 billion raised in 2024.