Reliance Industries Ltd’s subsidiary Reliance Industrial Investments and Holdings Ltd on Wednesday acquired a 12.7 per cent shareholding in venture-funded technology company SkyTran Inc.
The US-incorporated SkyTran Inc. develops technology in the field of personal rapid transit systems.
According to the company, it has made a strategic investment into SkyTran as part of SkyTran’s recently concluded preferred stock financing, with an option to further invest an amount of up to $25 million in convertible notes, subject to SkyTran’s Board approval.
Speaking on the transaction, Akash Ambani, Director, Reliance Jio, in a statement said: “Our partnership with SkyTran reflects our commitment to invest in futuristic technologies.”
“Reliance is well-poised to capitalize on its existing business portfolio and capabilities to accelerate the development of SkyTran across the world and especially in India.”
SkyTran has developed breakthrough magnetic levitation technology for implementing personal transportation systems aimed at solving the problem of traffic congestion globally.
“Reliance has made the investment in SkyTran with the aim to foster an exclusive partnership in India, where it would work closely with SkyTran to develop pilot implementations followed by implementation of its network in India at scale,” the statement said.
“Reliance would play an active role in advancing the SkyTran solution, especially in telecom (4G/5G/IoT/Giga Fiber), digital platforms and services, advanced materials and electric batteries.”
The company added that it would nominate a director on the Board of SkyTran.