Mukesh-Ambani led Reliance Industries after disrupting the telecom industry with 'Jio' is now to enter the education space with stake acquisition in Embibe, an educational technology solutions provider. RIL has announced plans to acquire 73% stake in the company by buying 34,33,767 equity shares of Indiavidual Learning Private in cash which translates to the stated stake in the edu-tech firm on a fully-diluted basis.
The company also has plans to invest a sum of $180 million (equivalent to Rs. 1,175 crore), which includes the financial consideration to be paid for a majority stake, over a period of three years time.
Akash Ambani, Director, Reliance Jio, asserted the rationale for the deal by saying that the stake in Embibe is in line with Reliance Industries' commitment to grow education in India and abroad. In a statement Akash Ambani said, "Reliance aims to connect over 1.9 million schools and 58,000 universities across India with technology".
As per the current details available the deal is expected to be closed in two months' time subject. It is to be noted that the transaction does not need any regulatory approval.
Embibe established in the year 2012 is a growing company in the education technology domain. Through the transaction, Embibe will gain access to the much needed capital from RIL which will help the company to augment its R&D capabilities in Artificial Intelligence in education. Additionally, the company will also work to broader its geographical reach and grow its business at the same time by providing services including professional skilling, vernacular languages and all of the curriculum categories throughout India and even abroad.