Thursday, June, 13, 2024 09:46:26

RIL subsidiary has invested in two software and logistics companies to strengthen its digital capabilities

Reliance Industries has recently acquired two companies, Grab A Grub Services and C-Square Info Solutions, through its 100 percent subsidiary Reliance Industrial Investments and Holdings Limited (RIIHL). The company has apparently signed these agreements for reinforcing the digital and e-commerce capabilities of RIL.

Sources with knowledge on the matter stated that RIIHL would be acquiring equity shares of C-Square for nearly Rs. 22.05 crore in cash consideration. RIIHL is planning to invest about Rs. 60 crore in the company further, by March 2021. These investments, sources informed, would represent over 82% of the equity capital of C-Square.

Grab A Grub Services Private Limited, RIIHL’s second investment, would entail a cash consideration of Rs. 106 crore, as well as a follow-on investment of up to Rs. 40 crore by March 2021, the sources added. These investments would be translating to over 83% of the equity capital of Grab.

For the record, C-Square is a software firm which is involved in offering solutions to the pharmaceutical industry players, including distributors, C&F, retailers, sales force automation and online e-commerce. The company reportedly had a turnover of Rs. 13.5 crore in fiscal year 2018.

Grab A Grub, on the other hand, is a logistics services platform which is providing technology-enabled, asset-light logistics services for several sectors, such as B2C and B2C verticals. For FY18, the company had recorded a turnover of Rs. 28.39 crores.

These two deals have followed RIIHL’s purchase of Bengaluru-based Reverie Technologies, a local language technology services start-up, in the previous month. The Reliance subsidiary had apparently committed investments of up to Rs. 190 crore in Reverie for acquiring its shares, in addition to a further Rs. 77 crore investment in the start-up.

Market reports show that on Friday, 1 March 2019, Reliance Industries stocks had closed at Rs. 1226.70 a piece on the BSE, which represented a 0.39% fall.