River EV in Advanced Funding Talks with Anicut Capital, Claypond Capital, Elev8 Venture Partners for $80-$100 Million Investment Round

Ranjan Pai's Claypond Capital Secures $80-100 Million Investment for EV Startup River

Chennai-based Anicut Capital is set to join Ranjan Pai's Claypond Capital and Elev8 Venture Partners in investing between $80-100 million (approximately Rs 720-950 crore) in EV startup River. Sources close to the matter revealed that Anicut Capital has expressed interest in funding River EV alongside Claypond and Elev8 Venture Partners in a larger round.

The investment is part of River's Series C round, which was initially planned to raise $80 million. However, the deal contours have changed, with River now likely to raise around $100 million. A91 Partners, which was initially part of the investment syndicate, will no longer be participating in the funding round. Instead, Anicut Capital and two other investors are engaging with River to join the funding round.

River's Growth Plans

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Founded in March 2021 by Aravind Mani and Vipin George, River has been backed by large international funds. However, this will be the first time Indian investors will take large positions in the company. River plans to use the fresh funds to launch new EV models, expand distribution, and set up a new manufacturing plant. The company currently operates over 40 stores and aims to scale to 350 stores by March 2028.

Financial Performance

River delivers about 3,000 EVs a month and is likely to close FY26 with around Rs 500 crore in revenue, up nearly 5x from FY25. The company's losses stood at Rs 196 crore in FY25. With the launch of new models, River's revenues are expected to increase.

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India's EV Two-Wheeler Market

The funding comes at a time when India's electric mobility story continues to gather momentum. India's electric two-wheeler (e2W) market saw registrations in April come in at 1.4 lakh units, a fall from 1.92 lakh units in March. Despite the month-on-month decline, registrations were up over 50 percent from the 92,532 units sold in April 2025.

TVS, Bajaj, and Ather continue to be the top three players in the market, each holding an 18-26% market share. River ranked seventh among Original Equipment Manufacturers (OEMs) in April, selling around 3,000 units during the month, a fall from around 3,900 units sold in March.

The broader EV ecosystem continues to attract investor interest, with India's electric mobility sector raising $1.4 billion in 2025, marking a 27 percent increase from the $1.1 billion raised in 2024.