Bengaluru-based electric vehicle start-up River EV has raised $15 million (Rs 123 crore) in funding led by Dubai’s multinational powerhouse, Al Futtaim Group. The fund will be used for manufacturing, delivery and setting up of dealership network. The e-scooter is scheduled to begin deliveries by August 2023.
With this the company has raised a total of $28 million (Rs 231 crore) till date. This includes the earlier $2 million (Rs 17 crore) raised in March 2021 and $11 million (Rs 90 crore) in August 2022.
First unveiled in February 2023, the River Indie e-scooter is unlike any typical scooter sold in the country. Aravind Mani, Co-Founder and CEO, River EV told Financial Express Online that the company aims “to meet the delivery schedule of August and be present in 3 to 5 cities by end of the year.”
He added that the company has been focussing on bringing the product faster to market, “If you look at River Indie it was unveiled production-ready. This funding will help us bring the product to market. In fact, as we speak the production lines are getting ready. We will test the battery and vehicle assembly lines in the coming few weeks.”
Paul Willis, President, Al Futtaim Automotive said, “We evaluated over 50 electric two-wheeler start-ups, and are impressed by the team’s vision and relentless commitment to in-house product development. I am confident that their products will see great success, in India and internationally.”
FAME 2 subsidy revision impact
As reported on May 16 by Financial Express Online, the FAME 2 susbsidy have been revised, which means the fiscal incentive provided on e-scooters was brought down. This has led to price revisions across the two-wheeler segment. For River EV too, this may mean a price revision. “We are reaching out and discussing the same with customers on the same. We have not yet decided or come to an exact number on the price revision,” explained Mani.
It is interesting to note that the start-up could also look at honouring at least a portion of the customer delivery on the earlier announced prices, but nothing concrete has yet been announced.
“The overall electric vehicle industry is maturing. Be it in terms of technology, products or solutions, the customers do understand the TCO of an electric vehicle. Unlike a traditional IC-two-wheeler, the electric vehicle comes with a battery (read fuel). The running cost of an EV is a fraction of that of its IC-counterpart. We knew that someday the FAME 2 subsidy would go away, the only thing that was not known was the timing,” shared Mani.
But all is not lost, Mani pointed out that River Indie e-scooter has passed all the requirements needed for the FAME 2 certification, it expects that by the time the deliveries begin (August 2023) it will have received the certification.
Sales network and new launches
As part of its sales strategy, it aims to have a mix of dealer partners and company-operated experience centres. Mani planned to grow sustainably and not chase unrealistic numbers. He maintained the earlier target of selling up to 5,000 e-scooters in the first year of operation and then gradually scale up the numbers.
When asked about future product launches, Mani added that at least for the first two years or 2024, “there is no plan to launch another product.”
River EV will continue to focus on the two-wheeler segment and will also explore utilising the modular platform of the Indie e-scooter.
Going forward River EV could also look at raising another round next year. It is targeting to achieve breakeven by selling 5,000 units a month by the middle of 2024. Only time will tell if River EV with its quirky design and utilitarian platform has what it takes to flow the course. But one can expect a lot of action in the coming days.
