Electric two-wheeler River has raised $11 million in a Series A funding round led by Chris Sacca’s Lowercarbon Capital. Even Toyota Ventures participated in the funding round.
The Bengaluru-based River plans to launch its multi-utility electric scooter by late 2022 or early 2023. The company mentioned that they plan to use the funds to expand their R&D division and set up a manufacturing facility.
Chris Sacca, managing partner of Lowercarbon Capital, which is known for investing in tech-companies like Uber, Twitter, and Instagram, stated, “Three of four vehicles sold in India are two-wheelers, but what’s available today have loud, dirty, gas burning engines from last century. River’s electric two-wheelers are the new go-to for Indian riders because they’re faster, tougher, and just plain cooler than anything else on the market.”
“Two-wheeled vehicles are the foundation of mobility in India and a huge worldwide market principally because they’re so easy to navigate in congested urban environments,” added Jim Adler, founding managing director of Toyota Ventures. “We think River will capture this massive opportunity by offering high-quality, affordable, and stylish all-electric two-wheeled vehicles for both consumer and commercial use.”
River’s EV Journey
River was founded in 2020 by Aravind Mani and Vipin George. Last year, they raised a seed round of $2 million from Israel-based Maniv Mobility and San Francisco-based Trucks VC. In all, River has managed to raise $13 million in funding.
Speaking about the latest funding, Mani mentioned that he is grateful to have access to such funds that will enable the company to make cities cleaner while empowering people through mobility. He also asserted that he sees it as a validation of their hard work and is excited to show the products under development. Mani added, “We are very focused on utility and livelihood. River is conceived as a brand that creates, celebrates, and enables livelihood.” The company plans to take on the competition in the two-wheeler segment and believes this will be their strength.
The company has a R&D team of more than 100 engineers and most of its prototypes have been road tested for over six months. It has completed a total test drive of 50,000 kms and has plans to reach 1.5 lakh kms before its launch. The company will channel the newly-acquired funds into setting up a 120,000-square-foot manufacturing facility that can produce around 100,000 vehicles annually. The facility is expected to be operational by the end of this year.
Globally, the electric scooter and motorcycle market is expected to grow at a CAGR of 33.1% Government subsidies and tax cuts have contributed to wide-spread innovation and growth in this market. As oil and gas prices rise customers are on the lookout for cheaper, environment-friendly alternatives. Electric two wheelers also last longer than their fossil fuel-powered counterparts making them an easy choice for the consumer.
The Global EV Two Wheeler Market
In Asia Pacific, most electric scooter/moped manufacturers prefer 48V batteries over 36V. According to industry experts, the electric two wheeler segment is set to develop exponentially in India and China.
As of 2021, the global electric scooter market size was estimated at around $20.78 million. High mechanical efficiency, easy integration of regenerative braking, low noise levels, and moderately economical maintenance costs have worked in favor of these vehicles. Although the initial cost of purchase is greater than its gas-powered or hybrid counterparts, increasing awareness about its efficiency and environmental benefits have resulted in a surge in demand.
Increased adoption in countries like the US, Spain, Germany, and France have also spurred demand, with more than 90 cities adopting electric scooters. Customers are also eager to do their bit to promote clear energy while curbing vehicular emissions in hope for a greener future.
