River Aims to Sell 100,000 Electric Scooters by 2025
- ByStartupStory | February 22, 2023
River, an electric vehicle startup headquartered in Bengaluru, is set to unveil its debut premium electric scooter on February 22. The company, established by Vipin George and Aravind Mani, aims to achieve a sales target of 100,000 units within the next 24 months.
With the support of prominent eco-friendly investment funds, Lowercarbon Capital and Toyota Ventures, River is aiming to attain its maximum production volume of 9,000 electric scooters per month by 2025. The startup’s new manufacturing plant, located in the outskirts of Bengaluru, is scheduled to commence operations from August 2023. The plant has already started pre-commercial testing in February this year. According to Arvind Mani, one of the company’s co-founders, the plant will be operating in three shifts, producing approximately 9,000 units per month.
River’s initial launch is focused on the high-end electric scooter sector, with the introduction of several new features. “Our target market comprises of the second wave of electric scooter consumers who have already experienced and assessed existing electric scooters, and are now seeking more comfort and lifestyle-oriented aspects in their scooters,” stated Mani, one of the company’s co-founders.
According to Mani, River intends to provide electric scooters with enhanced features to cater to the needs of the second wave of electric scooter purchasers. He said, “Our goal is to carve out a niche in the market, similar to the space SUVs have created for passenger vehicles. Therefore, we are promoting our new offering as a lifestyle product to create a unique selling proposition (USP) compared to the current selection of electric scooters.” The company views the whole 125cc scooter market as its target market.
The premium electric scooters from River are priced at roughly Rs 1.3-1.5 lakh per unit. This implies that at full capacity utilization, the firm could generate revenue of approximately Rs 1,400 crore by 2025, which is nearly equivalent to half of Ather Energy’s current year revenue, as per Mani. To date, the company has received two rounds of funding, totaling $13 million (Rs 100 crore), from four investors.
Most of the funds secured by River have been utilized to establish its new manufacturing plant in Bengaluru. The company is presently negotiating with various investors for its next round of funding, which will be primarily utilized for expanding its network and financing marketing expenses. During the first year of operation, River intends to establish retail outlets in 4-5 cities. It plans to open 5-6 stores each month, aiming to extend its reach to 150 cities within two years.
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