River Electric vehicle manufacturer River, which is also a new entrant in the Indian electric vehicle market, has donned the industry well to be impressive. Making Rs 100 crore in revenue is clearly a major financial milestone for a company it’s just four years old. The brand’s hot-selling electric scooter River Indie too has received overwhelming response crossing 1,000 units per month in retail in March.

What’s really impressive about all of this, is the fact that the platform is newly established, having launched as recently as March 2021! Borne of a desire to challenge India’s urban mobility status quo, River caught the eye of city slickers with its quirky design, utility-driven add-ons, and a fresh perspective on electric commuting. Their flagship electric scooter, the Indie, was introduced two years ago, and costs Rs 1.44 lakh (ex-showroom, Bengaluru). Located in the premium e-scooter category, the Indie caters to performance as well as utility and appeals to a broad spectrum of urban riders.
Aravind Mani, and co-founder of River, had this to say about the milestone: “We’re so proud of how far River has come since the beginning. He emphasized the work that has gone into research and development, manufacturing capabilities, and the expansion of the distribution network. He added that the robust footing developed over the last few years is, in turn, helping them grow their operations and product range.

Behind River’s surge is also a powerful roster of backers and supporters. The company has been backed by investors including; Yamaha Motor Corporation, Mitsui & Co. Ltd., Marubeni Corporation, Al Futtaim Group, Lowercarbon Capital, Toyota Ventures, Maniv Mobility and Trucks VC. This support has helped River not just validation at work, but also fuel its expansion in several directions.

As of now, River functions with a chain of 20 stores across Bengaluru, Hyderabad, Chennai, Hubli, Visakhapatnam, Kochi, Coimbatore, Vellore, Thirupati, and Mysore. The firm is in strategic expansions and will be entering Trivandrum, Vijayawada, Pune soon. River’s vision is to have a presence in more than 100 cities in India by 2026, a combination of company-owned outlets and dealerships. This approach would help it in reaching more consumers and boosting customer support.

For everything that its happened for the River Indie scooter, the actual product has been a significant part of the reason why the company has done as well as it has. It features a 4 kWh battery pack which promises an electric range of 161 km per charge. One can charge the battery from zero to 80 percent in five hours, and that makes it applicable for daily city commutes. The 9-hp, 26-Nm electric motor gets the Go from 0 to 40 km/h in 3.7 seconds, with a top speed of 90 km/h, and paired with a number of practical enhancements and modern design, the Go is a tempting choice for city transport.

Aside from performance, River has aimed to provide a distinctive combination of aesthetic and practical. One of those three is this guy, a rugged looking, adventure-scooter-type electric ride with built-in cargo options and a burly frame. It caters to consumers who want an electric vehicle — but also want utility and comfort.

River’s swift ascent is indicative of the shake-up under way in India’s electric vehicle industry. The market is getting more competitive as larger players move in, but there are still plenty of spaces for firms with unique products and a strongly defined value proposition. River appears to have struck a nerve with a rider base who share the same appreciation for both aesthetics and performance in the e-scooter category.

In future, the company will capitalize on this progress by launching new offerings and scaling up its business. A new product line up on the horizon that is expected to orient more towards EVs designed for both personal and commercial purposes. With such a solid foundation and such a solid support from investors, River is well positioned to grow aggressively over the next few years.

In Conclusion As India grows its in-house EV market, the journey of River demonstrates a case in point of how concentrated innovation, supported by smart funding and effective execution, can generate an established brand in a short time. What they have achieved is not only a significant step for the Company but it is also testimony to the fact that the industry is moving towards the future where electric mobility is the only solution not just for the people in India but for people around the world.

Article By
Sourabh Gupta

It’s now known that Mahindra & Mahindra is all set to launch the electric version of its compact SUV, the XUV 3XO. India is gradually stepping ahead in the electric mobility space and with this new model to counter other attractions in the electric scooter market, Mahindra seems to be just strengthening its position even stronger. The XUV 3OO EV is expected to come with more range, latest technology and a comprehensive safety package -The XUV 3XO EV will offer a great compromise to prospective buyer in the increasingly crowded electric SUV segment.

Aesthetically, the XUV 3XO EV will have most of the chunky and sporty look of the ICE version, which enjoys great popularity. But to stand out as an EV, there are bound to be a few changes, a couple of which you could even notice. They could include a minorly updated front end – a la new headlight arrangement and a more closed-off grille, reshaped bumpers and maybe modernising the back door too, to give it a more futuristic and cleaner cut. The improvements won’t be limited to skin-deep — the cabin is also tipped to be given a spruce-up. We expect a two-tone black-beige colour scheme inside, and the copper treatment will remain limited to small dozes on key touch points such as the gear lever to add a slight tinge of premium and a modern touch to the cabin.

Performance-wise, The XUV 3XO EV is likely to be made available in two battery pack options. The first is a 34.5 kWh battery that could provide range of around 359 km per charge. That larger 39.4 kWh battery could potentially boost the range to a very impressive 456 kilometers. These will make the XUV 3XO EV suitable for everyday urban commutes and long drives. The fast charging technology is increasingly becoming a popular feature in the segment and it could also lower charging anxieties for potential customers in the future. And the SUV will be driven by a single electric motor that can crank out 110 kW and 310 Nm of torque. Those numbers imply a peppy and responsive drive, and they should meet the performance needs of anyone who feels the need for speed and fuel economy.

Mahindra also seems to concentrate on offering the XUV 3XO EV with a long feature list to attract today’s buyers. Centre of the dashboard will feature a (probably) 10.25-inch touchscreen infotainment system which will be compatible with Android Auto and Apple CarPlay for connectivity. besides, the car is likely to get a full-digital instrument cluster, giving you all the necessary driving information in a futuristic and convenient manner. Dual-zone automatic climate control is expected for comfort and convenience, in addition to a panoramic sunroof to help the cabin feel both more luxurious and open.

In terms of safety, the XUV 3XO EV should come loaded with safety gear, perhaps even Level 2 Advanced Driver Assistance Systems (ADAS). These ranges from lane-keeping assist, adaptive cruise control, and other semi-autonomous driving systems aimed at safety and convenience in the road. There should be six airbags, electronic stability control, a 360-degree camera system that will either be standard or available on higher trims if not standard, and in general peace of mind for occupants.

Another selling point is expected to be price. We expect the XUV 3XO EV to be priced in the range of ₹13-17 lakh (ex-showroom) and if it actually falls in this price vicinity, it could have a wide set of buyers, seeking a capable yet affordable electric SUV. This puts it in direct competition with rivals like the Tata Nexon EV and MG ZS EV, which have already made a mark in this segment. Mahindra’s introduction with the XUV 3XO EV could potentially shake up the market with a new design, more range options and a tech-laden package, all at an aggressive pricing.

Overall, the Mahindra XUV 3XO EV seems like a good addition to India’s electric SUV line-up. It combines a desirable cocktail of design, performance, technology and safety – while also keeping within a more attainable budget. As increasing numbers of people are seeing electric vehicles as a substitute to the traditional automobiles, the XUV 3XO EV could have a huge role in fast-tracking Mahindra’s electric journey.

Article By
Sourabh Gupta

Ather Energy’s upcoming initial public offering (IPO), which opens on April 28, is already causing ripples in the market ahead of its official launch. Hyped as losses stack up and the company tells of huge gains for founders, the electric scooter company, which has been in the red financially since launching in 2013, has piqued the interest of retail investors and market experts alike. The ₹2,981 crore IPO also comes with a fresh issue of ₹2,626 crore and an offer for sale of nearly ₹355 crore, by which, its founders — Tarun Mehta and Swapnil Jain plans to sell 19.60 lakh shares cumulatively.

The founders’ valuation jump is significant. They had their weighted average cost of acquiring the shares at just ₹21.09 per share. The IPO price band is set at ₹304 to ₹321 per share, and their holdings are likely to yield them returns of more than 1,422% at the upper end. This means a multibagger exit for the co-founders, among the highest seen in the recent startup IPOs.

For context: Founded in 2013, Ather enters one of the India’s electric two-wheeler early entry points. The first e-scooter was launched in 2018 and has achieved a solid brand presence, competing with rivals that include Ola Electric, TVS Motor and Bajaj Auto. Currently, Ather has an 11.5% market share in India’s EV two-wheeler space, making it the third largest player in the space by sales volume.

The company continues to run at a loss financially, though. According to its red herring prospectus (RHP), in FY24, Ather Energy posted a loss before tax of ₹1,059.7 crore, compared to ₹864.5 crore in FY23 and ₹344.1 crore in FY22. The top line numbers haven’t shown much of a growth potential either, with FY24 top line coming at ₹1,753.8 crore, marginally lower than ₹1,780.9 crore in FY23. The stagnant growth and persistent losses have cast doubt on its prospects for turning a profit in the near term.

Indeed the opening of losses has attracted heavy weights like Hero MotoCorp and Tiger Global as investors for the firm, which in itself is a positive vote in the future of the firm. These institutional backers seem to be betting on Ather’s long-term strategy, from its innovation-focused orientation to the expansion of its footprint. Ather plans to deploy considerable portion of its IPO proceeds to scale up production, especially at a new electric two-wheeler factory it is setting up in Maharashtra. The cash will also go toward repaying debt, which may relieve some of the financial burden the company currently has.

Since day one, the founders, Tarun Mehta and Swapnil Jain, have been the face of the brand. Ather’s vision and hard work helped it emerge as a familiar name in to space which has seen a rapid evolution in last few years. The impending financial windfall is viewed by many as a reward for taking a risk sooner and building the brand equity they’ve helped to create.

Yet investor sentiment remains to be cautious. While Ather’s backstory and growth prospects signal a compelling growth narrative, the fact the company can’t secure a break-even well after a decade of operating is a big red flag.

The company filings cakewalks around it – “Ather has incurred significant losses in the past, and we expect to continue to incur losses for the foreseeable future”, the company clearly stated. While such honesty should be appreciated, it’s also a reminder that the company is one bad quarter away from bankruptcy and the IPO was always a gamble. Yet Ather’s IPO remains to be a marker moment for the Indian EV sector.

It’s the first mainboard issue of the new financial post-Covid year and is seen as a litmus test for how the market views the EV investments. Ather is largely supported, has a strong brand value and early mover advantage in the market, and thus it is highly awaited. But now, Ather is under pressure. The IPO subscription window is open for 3 days and would end on April 30.

Ather plans to list on BSE and NSE. The company would now be demanded to satisfy shareholder expectations regarding financial performance milestones. The listing would be watched by institutional and retail investors. It would be seen as a proxy for market sentiments for the EV space which struggles with profitability.

Article By
Sourabh Gupta