Diversified conglomerate Reliance Industries has taken majority ownership of its portfolio company, US-based public transit technology developer SkyTran, through subsidiary Reliance Strategic Business Ventures, it announced on Sunday.
Reliance invested an additional $26.8m to increase its stake from 26.3% to 54.5%, with an additional investment of $26.8m.
SkyTran is developing pod car transport systems utilising passive magnetic levitation and propulsion technology. The deal is part of a strategy to use Reliance Industries as a platform to develop new technologies, according to the Economic Times.
Reliance paid an undisclosed sum to increase its stake from 12.7% to 17.4% in late 2019 having first invested in 2018 when it paid an undisclosed amount for a 12.7% stake.
The company had already raised $2.5m of series A funding from Innovation Endeavors in 2015 and $6.5m from undisclosed investors two years later.
Mukesh Ambani, chairman of Reliance Industries, said: “We are excited by SkyTran’s potential to achieve an order of magnitude impact on highspeed intra and inter-city connectivity and its ability to provide a high speed, highly efficient and economical transportation-as-a-service platform for India and the rest of the world.
“We firmly believe that non-polluting high speed personal rapid transportation system will help facilitate environmental sustainability through efficient use of alternative energy and make an impactful reduction in air and noise pollution.”
