Electric-scooter startup River has raised $40 million (₹3.35 billion) in an oversubscribed Series B funding led by Yamaha Motor. The Bengaluru-based electric vehicle (EV) company plans to scale its distribution and service network across India and develop a future line-up of products using the funding.

The round also saw participation from existing investors Al-Futtaim Automotive, Lowercarbon Capital, Toyota Ventures, and Maniv Mobility, taking the total funding raised to $68 million (₹5.65 billion) since River’s inception in March 2021.

The company started selling its first scooter, Indie, in October 2023 and opened its first store in Bengaluru in January 2024. The scooter is powered by a 4 kWh battery and has a range of 120 kilometers.

River plans to scale to over 100 cities in the next two years.

“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,” Jim Aota, Chief General Manager of New Business Development Centre, Yamaha Motor, said.

Aravind Mani, Co-founder and CEO of River said, “The investment is a significant boost for our plan to build a billion-dollar global utility-lifestyle brand by 2030. We have built a great base in R&D and manufacturing over the last two years, and now, it’s time to grow.”

Recent revisions by the government reduced the Budget 2024 estimate outlay for the Program for Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicle in India – (FAME – India) from ₹51.72 billion (~$623.28 million) to ₹26.71 billion (~$321.88 million). The program provides subsidies for electric vehicle manufacturing in the country.

According to the Annual and Q4 2023 Funding and M&A Report for Storage & Grid, corporate funding for smart grid companies was down 30% year-over-year, with $3.3 billion in 60 deals compared to $4.7 billion in 58 deals in 2022.