River Mobility expects to achieve operational breakeven after crossing 25,000 monthly vehicle sales, a target it aims to reach in Q1 or Q2 of FY29
The company expects FY26 revenue to grow around 4.4x over FY25 revenue of ₹101 crore, while continuing to incur losses amid expansion investments
River plans to begin work on its second manufacturing facility within 45–60 days, with its existing plant likely to reach full capacity in the next three to four months
Of the $120 million raised by electric two-wheeler maker River Mobility in its oversubscribed Series C round, nearly 40% will be deployed towards research and development and factory expansion, cofounder and CEO Aravind Mani told Outlook Business.
The Bengaluru-based company is in the final stages of discussions with state governments for its second manufacturing facility and expects work on the new plant to begin within the next 45 to 60 days.
The $120 Mn comes from a mix round comprising $80-85% in equity funding and the remaining from venture debt.
1 August 2026
Get the latest issue of Outlook Business
Led by Elev8 Venture Partners and Claypond Capital, the round includes equity investors like Singularity AMC, Anicut Capital, 360 ONE Asset, JIF Capital and HDFC AMC, while Alteria Capital, Innoven Capital and Stride Ventures provided the venture debt. Existing backers Yamaha Motor Corporation, Al Futtaim Group and Mitsui & Co. also participated.
Advertisement
The fresh capital will be used to expand capacity at the company's existing manufacturing facility, set up a new greenfield plant in southern India, launch new products and invest in technology development.
Founded in 2021 by former Ultraviolette executives Aravind Mani and Vipin George, River manufactures multiutility e-scooters. It currently has only one model – Indie, which was launched in February 2023. The startup began sales of the escooter in October 2023.
River currently manufactures only the Indie electric scooter. Its existing plant has an installed capacity of around 10,000 units a month and is already about 60% utilised. According to Mani, the facility is expected to reach full capacity in the next three to four months, making additional manufacturing capacity necessary.
Advertisement
The company, which currently operates about 75 retail stores, plans to expand its network to more than 200 outlets by March 2027 and around 400 by March 2028.
River is also preparing to broaden its product portfolio beyond the Indie. While the company plans to launch new utility-focused electric scooters, Mani said it would retain the brand's positioning around utility and design.
"We have been able to build a very clear segmentation for River under utility scooters. The utility lifestyle has a clear position. We will continue what is working for us and create products that cater to slightly different customer segments," he said.
River's monthly sales have grown to nearly 6,000 units, giving it around a 3% share of India's electric two-wheeler market by volumes, according to Mani. He added that while the company ranks seventh by unit sales, it generates higher revenue than some larger-volume rivals because its products command an average selling price of around ₹1.55 lakh.
The company expects to remain loss-making until it reaches a significantly higher production scale. "We will continuously be loss-making till we are at 25,000 units a month because the cost structure comes down with volume," Mani said.
River expects to cross monthly sales of 25,000 units during the first or second quarter of FY29, following which it aims to achieve operational breakeven.
