India's electric two-wheeler market is heating up as River Mobility, a Yamaha-backed startup, announced a $120 million Series C round to expand production and product development. The funding arrives amid surging fuel prices and shifting consumer preferences toward cleaner transportation, positioning the company to challenge established rivals. Main Developments The company will use the capital to expand its existing Karnataka factory and construct a new plant with a monthly capacity of up to 80,000 scooters—eight times its current output. CEO and co-founder Aravind Mani confirmed the plans, noting that the existing facility produces 10,000 units per month. River Mobility has sold 27,533 units of its Indie scooter as of July this year, according to Vahan data. Mani projects annual sales to double or even triple from the 28,000 units sold in 2025, though he did not specify a timeline. Read also: Pakistani Rupee Nudges Up as Dollar Index Stays Flat The funding round was led by Elev8 Venture Partners and Claypond Capital, with equity comprising over 85% of the deal and debt covering the remainder. Existing backers—including Yamaha Motor Co, Al-Futtaim Group, and Mitsui & Co—also participated. Background Founded in 2021, River Mobility entered a crowded market dominated by Ather Energy, TVS Motor, and Bajaj Auto—the top three players in India's EV two-wheeler segment. Ather has sold 200,121 units, while TVS and Bajaj have moved 307,760 and 263,959 units respectively, per Vahan data. The company's revenue more than quadrupled in fiscal 2026, though Mani declined to disclose the figure pending audit. In fiscal 2025, revenue stood at approximately 1 billion rupees ($10.48 million). Why It Matters This investment signals growing confidence in India's EV sector, which has gained momentum from rising fuel costs linked to the Middle East conflict. For River Mobility, scaling production is essential to compete with larger players that have extensive distribution networks and brand recognition. The new plant's capacity could help the startup capture a larger share of the market, but it faces an uphill battle against rivals with significantly higher sales volumes. Success will depend on execution and consumer adoption of its scooters. What's Next River Mobility plans to launch a second premium utility electric scooter by mid-2027 and is already developing a third model. The company will need to finalize its audited revenue figures and begin construction of the new facility, which will be critical to meeting its ambitious growth targets.