Mukesh Ambani-owned Infotel has acquired 38.5% stake in digital learning solutions firm Extramarks Education, a move that will help Reliance Industries (RIL) to strengthen its content pipeline as it looks to launch its broadband services soon.
According to sources, there will be no dilution of equity in Extramarks and RIL will infuse fresh capital.
The investment by Infotel will enable Extramarks to pursue its aggressive growth plans in further developing services and deepening market penetration. The funds will be used for executing computer-aided learning projects and new technologies. Extramarks' digital distribution model provides students with education support and study help at affordable prices. "The relationship with Reliance is the start of an exciting phase for Extramarks.
Over the last two years, we have progressed on our journey of revolutionising the domestic education sector through technology enabled smart solutions and active participation in infrastructure development," Extramarks Chairman Atul Kulshreshta told PTI. The alliance with Reliance will accelerate the mass penetration of our offerings benefiting thousands of Indians who will have the advantage of quality education and study help at their doorstep, he added. Last year, Reliance Industries had acquired 95% stake in Infotel Broadband for Rs 4,800 crore, making it a subsidiary of Reliance Industries. Infotel Broadband is the only company which won broadband spectrum in all 22 circles in India, paying Rs 12,848 crore for the spectrum. Infotel is expected to launch its high speed Internet services or broadband wireless access services (BWA) by the end of this year or early next year. The acquisition of stake in Extramarks is expected to strengthen the Infotel's content portfolio and help grow its business, especially in the education sector, which is focusing strongly on delivering content using information and communication technologies (ICT).