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Reliance Industries Ltd (RIL) on Friday said it has entered into agreements to acquire close to 73 per cent stake in education technology provider Indiavidual Learning Private Ltd (Embibe) and will invest $180 million into the company over the next three years.
"Reliance Industries has entered into agreements on April 12, 2018, to acquire 34,33,767 equity shares of Indiavidual Learning Private Ltd for cash consideration, translating to 72.69 per cent shareholding of Embibe on a fully diluted basis," the company said in a regulatory filing.
Reliance said it has agreed to invest up to rupee equivalent of $180 million (Rs 11.75 billion) into Embibe, (including consideration to be paid for acquiring majority stake from existing investors) over the next three years.
Speaking on this strategic transaction, Akash Ambani, Director, Reliance Jio, said The investment in Embibe underlines Reliance's commitment to growing the education sector in India and the world and making education accessible to the widest possible group of students by deploying technology".
"Reliance aims to connect over 1.9 million schools and 58,000 universities across India with technology," he added.
Embibe is an emerging education technology provider incorporated in India in August, 2012.
Reliance said Embibe is an early stage company has on-boarded 60 education institutions to its platform.
Embibe will use the capital over the next three years towards deepening its R&D on AI in education, as well as business growth and geographic expansion, catering to students across K-12, higher education, professional skilling, vernacular languages and all curriculum categories across India and internationally.
RIL said this investment in education technology is in line with its commitment to invest and grow the education sector in India, and digital and technology businesses.
The transaction is expected to be completed in 2 months, subject to completion of customary regulatory compliances and other conditions precedent, and do not require statutory/ regulatory approvals.
Last month RIL said it has executed definitive agreements for combination of Saavn, a leading global music OTT (over-the-top) platform, with its digital music service -- JioMusic.
Reliance had announced it will also invest up to rupee equivalent of $100 million in Saavn, out of which rupee equivalent of $20 million will be invested upfront, for growth and expansion of the platform into one of the largest streaming services in the world.