Electric two-wheeler maker River Mobility is looking to raise about $150 million (₹1,332 crore) over the next two to three years, with the first tranche likely to happen in the next few months, said Aravind Mani, co-founder and chief executive. The fresh capital will be used for launching at least one new product every year starting FY27, capacity expansion, and to grow the distribution network, Mani told ET. River Mobility sells a single electric scooter model.

The company is aiming to enhance production to 20,000 units per month by March 2028, by which time it also intends to grow distribution more than tenfold to 350 outlets. It has 32 stores across 20 cities.

"In March 2025, we were selling around 1,500 electric scooters from 20 stores. As we grow our reach, we expect monthly sales to touch 4,000 units by the end of this fiscal," said Mani. "We expect to carry forward the current momentum and will reach full utilisation at our existing facility in the second half of FY26, when we have in place 150 stores."
He said River Mobility, which is backed by marquee investors including Japan's Yamaha Motor, Mitsui & Co, and Toyota Ventures, has shortlisted sites in two states for setting up its second factory.

River Mobility has currently leased a factory near Bengaluru, which can produce up to 8,000 electric scooters per month. The company has raised $70 million in four rounds since 2021.

Mani said a final decision on the location of the new factory, which will be owned by River Mobility, will be taken by March-end. The company, which has yet to take any debt, intends to utilise this route for raising 40-50% of the funding for the new plant.

Mani said electrification in the Indian two-wheeler market, especially scooters, is moving at a fast clip. "Last fiscal, penetration of electric in sales of new scooters stood at around 16%. This has already increased to 20% this year," he said. "The total cost of operation, usage patterns of scooter owners who commute 25-30 km daily intra-city, and good quality products are also supporting this shift."

Mani expects penetration of electrics in the scooter segment to possibly reach 50-60% in the next 3-5 years. As many as 1.2 million electric two-wheelers were sold in the local market last fiscal, which is expected to grow to at least 1.5 million units in FY26. Mani said he expects the company's revenue to grow fourfold in FY26 and for the company to achieve breakeven by March 2028 with a portfolio of three products. "We need a scale of 15,000-20,000 units per month to break even. This should happen around the time we have our third vehicle on the road," he said.