Reliance Strategic Business Ventures, a subsidiary of RIL, proposes to make a further investment of up to Rs 75 crore to acquire 89.66 per cent equity stake in the company
Mukesh Ambani-led Reliance Industries Limited (RIL) on Thursday said it has acquired a homegrown start-up NowFloats Technologies for a cash consideration of Rs 141.63 crore. The company said that this investment “will further enable the group’s digital and new commerce initiatives”.
RIL, in an exchange filing, said that its subsidiary, Reliance Strategic Business Ventures Limited (RSBVL), has acquired 85 per cent equity stake in Hyderabad-headquartered Software as a service (SaaS) for Rs 141.63 crore.
Established on May 9, 2012, Nowfloats offers SaaS solutions to small and medium enterprises (SMEs) that enable them to get a digital presence. The firm offers local content discovery platform, online business management suite, website promotion and marketing solutions.
“RSBVL proposes to make a further investment of up to Rs 75 crore, subject to achieving agreed milestones,” RIL said in a filing to the Bombay Stock Exchange.
The oil-to-telecom conglomerate said it will complete further investment by December 2020. Post the investment, the shareholding of RSBVL will increase to 89.66 per cent of the equity share capital of Nowfloats.
No governmental or regulatory approvals were required for the investment, the company said. “The investment does not fall within related party transactions and none of RIL’s promoter / promoter group / group companies have any interest in the transaction,” it added.
Nowfloats is an early stage company, with a turnover of Rs 32.56 crore. The company has posted a net loss of Rs 31.43 in FY19.
Ahead of the announcement, shares of RIL closed Thursday’s trade at Rs 1,567.50, up 0.31 per cent on the BSE.