Japanese automaker Yamaha Motor Co said on Tuesday it has led a $40 million (Rs 332 crore) Series B funding round in River, which makes and sells electric two-wheelers in India.
River’s existing investors Al-Futtaim Automotive, Lowercarbon Capital, Toyota Ventures and Tel Aviv-based Maniv Mobility also participated in the round.
The company plans to use the fresh capital to scale up its distribution and service network across the country and invest further in research and development for future lineup of products, it said in a statement.
“The investment is a significant boost for our plan to build a billion-dollar global utility-lifestyle brand by 2030,” said Aravind Mani, co-founder and chief executive of River. “We have built a great base in R&D and manufacturing over the last two years and now, it's time to grow.”
The latest capital infusion takes River’s total fundraise to $68 million (Rs 565 crore) since its inception in March 2021.
In 2021, River secured $2 million in a seed round and subsequently in 2022, it raised $11 million in a Series A funding round. In June 2023, it raised $15 million funding, led by Dubai-based Al Futtaim Group. The company has an R&D facility in Bengaluru, and a factory at Hoskote in the outskirts of the city. Last month, it opened its first store in Bengaluru.
“We are impressed by the progress that River has achieved in such a short span of time, especially with the strong focus on design and technology,” said Hajime ‘Jim’ Aota, chief general manager of New Business Development Centre, Yamaha Motor Co. “We are excited about the conviction that Aravind and Vipin have for River and how Yamaha can support the company to achieve this .”
Yamaha has previously invested in other startups in the space, including Rapido in 2021 through Yamaha India. In 2022, it invested an undisclosed amount in bike rental company Royal Brothers through its subsidiary, Moto Business Service India.
