Reliance Strategic Business Ventures Limited (RSBVL), a wholly-owned subsidiary of Reliance Industries, has increased its stake in SkyTran, a company that develops pod taxis in the United States. In a statement released on Sunday, the company said it had increased its stake to 54.46 percent on a fully diluted basis with a $26.76 million investment.
RSBVL raised its interest in SkyTran to 26.31 percent in April 2020, up from 17.37 percent previously. SkyTran was initially backed by the affiliate, which purchased a 12.7% stake in the company in October 2018. According to the above, the investment in 2018 was part of skyTran’s preferred stock funding, with an option for RSBVL to invest up to $25 million in convertible notes.
According to Mukesh Ambani, Managing Director of Reliance, SkyTran will provide a high-speed, highly reliable, and cost-effective ‘Transport-As-A-Service’ network for intra-city and inter-city connectivity for India and the rest of the world. “Our acquisition of a majority equity stake in SkyTran demonstrates our commitment to investing in the development of cutting-edge technology that will change the world,” Mukesh Ambani said.
SkyTran was established in 2011 with the aim of developing “passive magnetic levitation and propulsion technology” to transport people and relieve traffic congestion around the world. According to RSBVL, the proposed SkyTran transportation systems will consist of computer-controlled passenger pods that would transport passengers using IT, telecom, IoT, and advanced materials technologies. SkyTran is also funded by foreign venture capital companies like Innovation Endeavors.
“We are persuaded that a non-polluting high-speed personal rapid transportation system would aid environmental sustainability by promoting the effective use of renewable energy and reducing air and noise pollution,” Mukesh Ambani added.
