Reliance acquires majority stake in skyTran with additional funding in US-based transportation tech firm

1 month ago

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Updated: Feb 28, 2021 8:49 PM

Reliance CMD Mukesh Ambani said that SkyTran has the ability to provide a high speed, highly efficient, and economical ‘Transportation-As-A-Service’ platform for intra and inter-city connectivity in India and also the rest of the world.

 FitchRSBVL had originally backed skyTran in October 2018 with a 12.7 per cent stake acquisition.

Reliance Strategic Business Ventures Limited (RSBVL), a wholly-owned subsidiary of Reliance has further increased its stake in the US-based urban transportation technology company SkyTran developing pod taxis. The company on Sunday, in a statement, announced raising its stake to a majority 54.46 per cent on a fully diluted basis with an investment of $26.76 million. RSBVL in April 2020 had increased its stake in SkyTran to 26.31 per cent from the previous 17.37 per cent. The subsidiary had originally backed skyTran in October 2018 with a 12.7 per cent stake acquisition. The investment in 2018 was part of skyTran’s preferred stock financing with an option for RSBVL to further invest up to $25 million in convertible notes, the latter had said.

Reliance CMD Mukesh Ambani said that SkyTran has the ability to provide a high speed, highly efficient, and economical ‘Transportation-As-A-Service’ platform for intra and inter-city connectivity for India and also the rest of the world. “Our acquiring majority equity stake in SkyTran reflects our commitment to invest in building futuristic technologies that would transform the world,” said Mukesh Ambani.

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Incorporated in 2011, SkyTran has developed ‘passive magnetic levitation & propulsion technology’ to transport people and solve the traffic congestion problem globally. RSBVL said that the proposed SkyTran transportation systems would consist of computer-controlled passenger pods and would use IT, telecom, loT and advanced materials technologies to transport passengers. SkyTran is also supported by global venture capital investors such as Innovation Endeavors.

“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,” added Mukesh Ambani.

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