River Mobility is planning to raise $150 million as part of its expansion plan to set up a new factory in the south to make electric two wheelers, said its top executive.

“We are in talks with officials from four southern states seeking 25-50 acres for setting up a new factory. We will arrive at a final decision by second half of 2025 and will start construction in 2026,” said River Mobility Pvt. Ltd., co-founder & CEO Aravind Mani during an interaction.

The Bengaluru-based EV start up is scouting for fresh investment for the new factory as the existing one at Hoskote near Bengaluru will reach full capacity in FY26. The investment in the new plant is around ₹1,000 crore and it can produce five lakh units per annum in addition to existing units capacity one lakh vehicles per annum.

“We have already raised ₹550 crore in three rounds, most of which were used for building a pilot plant in Hoskote and for scaling up the infrastructure. Currently, promoters stake is 40%. We are a zero debt firm and will be raising debt funding,” he said.

Mr. Aravind was in the city to open the new outlet of River in Chennai. It already has two branches in Bengaluru and one in Hyderabad. By end of FY25, the company plans to have 50 stores in different parts of the country and 100 outlets in FY26. About 10% of outlets will be company owned.

Asked about their preferred location for the new unit, he said “though we like to have it in Tamil Nadu, much depends upon availability of land, its price and tax benefits.”

The three-year-old firm started retailing EVs under the brand name Indie from October 2023. It expects to clock a revenue of ₹80-120 crore in the first year of its operations (FY25). Currently, it is selling 400 bikes per month through three stores.