RIL to buy 73 % stake in AI-based edutech firm Embibe
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Mumbai: Reliance Industries (RIL) on Friday announced it has agreed to buy a majority stake of 72.69 per cent in the artificial intelligence (AI)-based education platform Indiavidual Learning Pvt Ltd (Embibe) from existing investors over the next three years.
In a statement here, the Mukesh Ambani-led RIL said it has agreed to invest the rupee equivalent of $180 million into Embibe, which leverages data analytics to deliver personalised learning outcomes to each student.
"Reliance executed definitive agreements to acquire majority shareholding constituting 72.69 percent (on a fully diluted basis) from existing investors of...Embibe,...," the statement said.
Embibe will use the capital to deepen its research and development (RandD) on AI in the field of education, business growth and expanding geographical presence, catering to students across K-12, higher education, professional skilling, vernacular languages and all curriculum categories across India and abroad, it said.
The Founder and Chief Executive of Embibe, Aditi Avasthi, will continue in her leadership role to drive the growth of the business, the statement added.
Commenting on the development the Director of RIL's telecom arm Reliance Jio, Akash Ambani, said in a statement: "The investment in Embibe underlines Reliance's commitment to growing the education sector in India and the world and making education accessible to the widest possible group of students by deploying technology."
"Reliance aims to connect over 1.9 million schools and 58,000 universities across India with technology," he said.
"With robust AI stacks focused on content intelligence and automation, behavioural recommendations and student intelligence, our products have redefined the way edtech can impact the lives of students and teachers," said Avasthi.
The transaction is subject to customary closing conditions, while Citibank acted as the financial advisors, the release said.
AZB and Partners, Covington and Burling LLP and KPMG acted as legal advisors, while Pricewaterhouse Coopers provided tax advisory and diligence services to RIL, it added.