Asia’s richest man Mukesh Ambani has acquired startups in last-mile logistics, the software even as it prepares to take on Amazon and Walmart-owned Flipkart in India’s hypercompetitive e-commerce market.
Reliance Industries Limited (RIL), through its subsidiary Reliance Industrial Investments & Holdings (‘RIIHL’), has acquired three software solutions companies — Reverie Language Technologies Pvt Ltd, Surajya Services Private Limited (‘Easygov’) and SankhyaSutra Labs Pvt Ltd, according to various media outlets.
According to BSE filings, the conglomerate has acquired a 76% equity stake in EasyGov and more than 80% stake in SankhyaSutra and Reverie. It is further looking to invest around INR 327 Cr together in all the three startups by 2021.

Bengaluru-based Reverie Language Technologies builds Indian language suits for Chatbots and IVR. Backed by investors like Microsoft Accelerator, Qualcomm Ventures, and Aspada, Reverie last raised funding in 2016. In addition to a cash consideration of Rs. 190 crores for Reverie, RIIHL will invest Rs. 77 crore for 83.30% equity capital in Reverie on a fully diluted basis. The total investment is likely to be completed by March 2021. Post-acquisition, Reverie would work in collaboration with the Reliance ecosystem for integrating its services in the various existing digital consumer platforms of the group.

Founded in September 2015, SankhyaSutra Labs is a High-Performance Computing (HPC) software simulation services company that offers simulation services for manufacturing and Industrial companies like — automobile, aircraft manufacturing, oil, and gas, and semiconductor manufacturing, etc. SankhyaSutra Labs was incubated at the Jawaharlal Nehru Centre for Advanced Scientific Research (JNCASR), Bengaluru.

Founded in 2015, Easygov is an early-stage company focused on citizen-centric software solutions and services that help in improving convenience to people in accessing and digitally applying for Government to Citizen (G2C) schemes and services. For acquiring Surajya Services Private Limited (Easygov), a Noida-based data solutions company, RIIHL has entered into an agreement for the acquisition of equity shares of Easygov for up to Rs 18 crore.

Here is what experts have to say about the whole affair:

Arvind Singhal, chairman and managing director at retail consultancy firm Technopak said, “Reliance has an ecosystem of entertainment, financial services, payment gateway, etc. Once it has customers hooked on to these services, then it is a question of time before it can start offering merchandise as well.”
Whereas, Naresh T Raisinghani, CEO and Executive Director at India division of global consulting firm BMGI, is of the opinion that Reliance has been able to maintain the 3-5% profit, which is the range of profit for the retail sector. “Nobody would have thought that they would pull off something like Jio,” said Raisinghani.