Reliance Strategic Business Ventures Limited (RSBVL), a wholly-owned subsidiary of Mukesh Ambani-led Reliance Industries Limited (RIL), Thursday announced that it has acquired 85 per cent stake in NowFloats Technologies Pvt. Ltd. for about $20 million (Rs 141.63 crore).
RSBVL proposes to make a further investment of up to Rs 75 crore by December 2020, subject to NowFloats achieving certain milestones. Post the additional investment, its shareholding in Nowfloats will increase to 89.66 per cent, RIL said in a regulatory filing.
The investment will further enable the group’s digital and new commerce initiatives, the filing added.
Incorporated in 2012, Hyderabad-based NowFloats offers SaaS solutions to small and medium enterprises that enable them to get a digital presence. It also offers solutions, including local content discovery platform, online business management suite, website promotion/marketing solutions, among others, to SMEs.
The early-stage company, which counts Iron Pillar, IIFL and Omidyar Network among its investors, reported revenue of Rs 32.56 crore for 2018-19, up from Rs 18.73 crore the year before. Its net loss stood at Rs 43.24 crore for 2018-19, compared with Rs 47.49 crore in 2017-18.
In March, NowFloats reportedly raised about $3.6 million from a mix of new and existing investors including venture capital firms Iron Pillar, IIFL and Omidyar Network along with a new Malaysian investor, consulting firm Wenlyn Global Group.
Prior to this, NowFloats had raised Rs 14.36 crore in a bridge round of funding last year from Omidyar, Iron Pillar and IIFL, while in 2017, it secured $10 million in a Series B round.