Reliance Strategic Business Ventures Ltd (RSBVL), a wholly-owned subsidiary of Mukesh Ambani-led Reliance Industries, has acquired 85 percent of equity shares in NowFloats Technologies for Rs 141.63 crore.
Reliance Ind’s arm Reliance Strategic Business Ventures Limited (RSBVL) acquires 85% in @NowFloats Tech for Rs 141.6 Cr. Further investment of upto Rs 75 cr will be made when agreed milestones are achieved.
Further investment is expected to be completed by 2020 pic.twitter.com/XGQuzpicrG
— CNBC-TV18 (@CNBCTV18Live) December 12, 2019
RSBVL proposes to make a further investment of up to Rs 75 crore subject to achieving agreed milestones, Reliance Industries (RIL) said in a statement on Thursday.
Further investment is expected to be completed by next year-end. After further investment, the shareholding of RSBVL will increase to 89.66 percent of the equity share capital of Nowfloats.
Nowfloats was incorporated in India on 9 May 2012. It offers software-as-a-service (SaaS) solutions to small and medium enterprises (SMEs) that enable them to get a digital presence.
Other solutions include local content discovery platform, online business management suite, website promotion, marketing solutions and various other offerings for SMEs.
Nowfloats is an early-stage company with a turnover of Rs 32.56 crore, Rs 18.73 crore and Rs 10.38 crore and net losses of Rs 43.24 crore, Rs 47.49 crore and Rs 31.43 crore in FY 19, FY 18 and FY 17 respectively.
"The aforesaid investment will further enable the group's digital and new commerce initiatives," said RIL.
No governmental or regulatory approvals were required for the said investment. The investment does not fall within related party transactions and none of RIL's promoter or promoter group or group companies has any interest in the transaction, it added.
(Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd which publishes Firstpost)
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Updated Date: Dec 12, 2019 12:23:21 IST