EV Start-Ups River And OTO Raise $40 Million & $10 Million Respectively

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As the electric vehicle industry in India is finding ways to steady rise, the start-ups in the EV ecosystem are strengthening the supply chain and expanding by garnering fresh funds. In fresh developments, EV maker River and EV finance firm OTO have raised $40 million and $10 million to further their businesses

River Secures $40 Million

Electric vehicle manufacturer River has secured $40 million in its latest Series B funding round, led by Yamaha. This round also garnered support from existing investors including Al Futtaim Group, Lowercarbon Capital, Toyota Ventures, and Maniv Mobility.

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River said that the infusion of capital will be pivotal for River as it endeavors to expand its distribution and service network nationwide. Additionally, River  intends to allocate resources towards enhancing research and development efforts for its forthcoming product lineup.

With this recent funding, the total raised capital of River amounts to $68 million, which includes a $15 million Series-A round completed in June of the previous year. Co-founded by Aravind Mani and Vipin George, River introduced its inaugural product, a versatile electric scooter, boasting its origin from India. The scooter, named Indie, was meticulously crafted at River’s research and development center in Bengaluru and manufactured at the River Factory located in Hoskote, Bengaluru.

River sets ambitious targets, aiming to escalate its monthly sales from 100-150 vehicles to approximately 1,000. Concurrently, River is strategically focused on achieving positive unit economics in the foreseeable future, as articulated by its co-founder and chief executive officer, Mani.

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OTO Garners $10 Million

In other key development, OTO, a finance platform specializing in electric two-wheeler vehicles, has secured a $10 million funding round, with GMO Venture Partners, Turbostart, Cricketer KL Rahul, and many family offices. Notable participation also came from existing investors Prime Venture Partners, Matrix Partners, and 9Unicorns funds.

OTO is founded by Sumit Chhazed and Harsh. OTO facilitates the purchase, financing, and resale processes for two-wheeler buyers in India. The company’s innovative Super EMI plan reduces two-wheeler EMIs by up to 30%, offering customers the flexibility to upgrade or retain their vehicles at the end of the term.

Through its user-friendly app, OTO provides free home trials and guarantees the lowest prices, making the discovery and purchasing journey significantly smoother. The newly raised capital will fuel OTO’s expansion into more than 30 cities, support the shift towards electric vehicles, and strengthen existing partnerships.

It has a track record of selling over 75,000 two-wheelers and disbursing loans exceeding Rs 550 crore. With this OTO has become a trusted partner for banks and NBFCs due to its effective management of non-performing assets. These financial institutions have pledged over Rs 800 crore for the next 12 months.

Moreover, OTO has established partnerships with major two-wheeler brands such as Ola, Hero Motocorp, Royal Enfield, Ather, and Suzuki, leveraging their dealership networks.