Reliance Industries to Expand Its Digital Business
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Bangalore based Edu Startup Embibe, a subsidiary of Reliance Industries Limited (“RIL” ) has acquired more than 90 % in eDreams Edusoft Private Limited (Funtoot) Funtootfor over 70 crores. Embibe plans to invest an additional Rs 10 crore in Funtoot, to expand its stake to 100%.
The further acquisition is expected to be completed by December 2021, and following Embibe’s shareholding will increase to 100 % of the equity share capital. Funtoot, an ed-tech startup company based on Bangalore founded on July 09, 2010, is engaged in the business of developing e-learning products and providing practice, testing, and analysis modules for K-12 students for the subjects of mathematics and science.
This acquisition could boost Embibe education-technology development. Funtoot posted revenue of Rs 7.34 crore for the financial years 2018-19. It recorded a net profit of Rs 27.74 lakh for the 2018-19 financial year. For past years Reliance has been acquiring several technology companies to increase its digital business. Recently Reliance has acquired 85%,51.78% stake in software-as-a-service (SaaS)NowFloats, and drone maker Asteria Aerospace for $20 million and $3.3 million respectively.
Reliance also an invest additionally Rs 75 crore, Rs 23.12 crore to increase its stakes in NowFloats and Asteria Aerospace. Earlier, in April 2018 Reliance Industries invested $180 million in Embibe, towards acquiring a stake of 72.69 percent from Embibe’s existing investors. “Embibe offers customized modules to students that aim at addressing specific weaknesses based on analytics. Through technology, we aim to capture through technology what coaching classes can miss out on,” said Embibe founder and CEO Aditi Avasthi. Embibe, which had raised $4 million from Kalaari Capital and Lightbox Ventures at early seeding funds. Reliance Owned Embibe’s first major acquisition was 100Marks is was started in April 2012 founded by Pradeep Kumar and Anushri Kocher to help students crack the IIT JEE.