Yamaha Invests $ 40 Mn (₹ 332 Cr) in Indian EV Brand River Mobility

"SUV" Scooter Startup River Mobility Speeds Ahead with Yamaha Support, Aims for 100 Cities

The Indian electric vehicle (EV) market is buzzing with activity, and a new partnership promises to further accelerate its growth. Japanese giant Yamaha Motor Co Ltd, Japan has invested a significant $40 million (₹ 3.3 bn) in River, an Indian startup known for its electric two-wheelers.

River's flagship product, the Indie electric scooter, is unlike its competitors. Dubbed the "SUV of scooters," it boasts a larger size, ample storage space, and utility-focused features that cater to the diverse needs of Indian riders. Launched in October 2023, the Indie has already witnessed early success, and River aims to ramp up production to 3,000 units per month by the end of 2024.

Yamaha's investment marks a major boost for River. The $40 million(₹ 3.3 bn) infusion leads the Series B funding round, propelling the startup's valuation to "multiples of 10" compared to its 2021 seed round. This vote of confidence from a global leader like Yamaha Japan underscores the potential of River's vision and design capabilities.

The company plans to expand its reach to 100 cities across India. To achieve this, they are building a robust distributor network, starting with key cities like Ahmedabad and Hyderabad, while also strategically considering company-owned stores.

“By the time we are a five-year-old company in March 2026, we want to be in 100 cities and come to a scale of selling around 9,000 vehicles a month, which is approximately $200 million in turnover,” Aravind Mani, co-founder and CEO of River, said in an interview.

But the partnership doesn't stop at financial backing. While the initial investment is purely financial, both Yamaha and River are open to exploring joint product development in the future.

“We have a couple of products in mind. But we do not know what we will prioritize and launch first yet. However, I can tell you that any product we do will be within this particular purview of utility,” Mani said.

This potential collaboration could leverage River's design and technology with Yamaha's extensive global expertise, leading to innovative and exciting new electric vehicles for the Indian market.

“With Yamaha coming on board, there is also a strategic understanding to possibly collaborate on product lines, but we don’t have definitive agreements yet in place, or how that collaboration will look alike is not something that we have definitely agreements on. So, at this time, it’s a pure-play financial investment with the potential to collaborate more,” the co-founder noted.

“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. We are excited about the conviction that Aravind and Vipin have for River and how Yamaha can support the company to achieve this,” Hajime “Jim” Aota, Chief General Manager of New Business Development Centre at Yamaha Motor Company, said in a statement.

This strategic partnership between Yamaha and River is significant news for the Indian EV market. It highlights the growing acceptance and recognition of innovative startups like River, while also showcasing the increasing interest of established players like Yamaha in shaping the future of electric mobility in India.