By Malvika Gurung
Investing.com -- The retail arm of the conglomerate Reliance Industries (NS: RELI ), Reliance Retail has acquired a majority stake of 54% in the domestic robotics startup Addverb Technologies for a transaction of $132 million, roughly Rs 983 crore, informed a company official on Tuesday.
With a present valuation of $265-$270 million, Addverb Technologies expects to close the ongoing financial year with a 100% spur in revenue at Rs 400 crore, in comparison to Rs 200 crore last year, and targets on becoming a billion-dollar company by the next 6 years.
Acquiring 54%, Reliance has become the largest shareholder in Addverb, yet the company’s co-founder & CEO has confirmed that the company will continue its operations independently, and will utilise the funds injected from Reliance to expand its business in the overseas markets, including the US and Europe.
It will also use the funds to set up the biggest robotic manufacturing facility in Noida, where it already has a unit with a manufacturing capacity of about 10,000 robots every month.
Shares of Reliance Industries ended 1.19% lower at Rs 2,521.8 apiece on Tuesday amid a volatile session, with the benchmark equity indices Nifty and BSE Sensex ending 1.07% and 0.9% lower, respectively.
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