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

by Jeremy
RSBVL had initially backed skyTran in October 2018 with a 12.7 percent 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 of 54.46 percent 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 percent from the previous 17.37 percent. The subsidiary had initially backed skyTran in October 2018 with a 12.7 percent 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 could provide a high speed, highly efficient, and economic ‘Transportation-As-A-Service’ platform for intra and inter-city connectivity for India and the rest of the world. “Our acquiring majority equity stake in SkyTran reflects our commitment to investing 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 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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