Reliance Industries invests in personal transport systems developer Skytran Inc

19/10/2018

MUMBAI: Reliance Industrial Investments and Holdings Limited, a wholly owned subsidiary of Reliance Industries Limited (RIL) on Friday announced that it has acquired a 12.7 percent stake in US-based SkyTran Inc, a company that is developing technology in the field of Personal Rapid Transit Systems.
RIL announced that it had made the strategic investment in SkyTran to the tune of 12.7 percent of shareholding on a fully diluted basis. The investment was part of SkyTran's recently concluded preferred stock financing, with an option to further invest an amount up to $25 million in convertible notes, subject to SkyTran's Board approval.
SkyTran, which has partnered US's NASA and Israel Aerospace Industries (IAI), has developed breakthrough magnetic levitation technology for implementing personal transportation systems aimed at solving the problem of traffic congestion globally. SkyTran, which was founded in 2011, has eight approved patents and over 40 patents pending approval globally, including in India. SkyTran's technology development has focussed on the creation of Smart Mobility Solutions. The proposed SkyTran network would consist of computer-controlled passenger pods running on its patented Passive Magnetic Levitation technology and would use cutting edge IT, Telecom, IoT and Advanced Materials technologies to transport passengers in a fast, safe, green, and economical manner.
RIL's investment in SkyTran comes with the goal of an exclusive partnership in India, where it would work closely with SkyTran to develop pilot implementations followed by implementation of its network in India at scale. Reliance would play an active role in advancing the SkyTran solution, especially in Telecom (4G/5G/IoT/Giga Fiber), Digital Platforms and Services, Advanced Materials and Electric Batteries. RIL would also nominate a director on the board of SkyTran, a statement from the conglomerate said.
Eminent investors from around the globe, including funds promoted by Innovation Endeavors, Adam Neumann (Founder, WeWork), Tim Draper and others also participated in the preferred stock financing.
"Our partnership with SkyTran reflects our commitment to invest in futuristic technologies. Reliance is well-poised to capitalize on its existing business portfolio and capabilities to accelerate the development of SkyTran across the world and especially in India," said Akash Ambani, Director, Reliance Jio.
John Cole, Founder and CEO at SkyTran, also expressed optimism in collaborating with RIL. "We are excited to be working with Reliance. Reliance brings tremendous infrastructure and technical expertise and the ability to execute at the largest scale. We believe our partnership with Reliance has the potential to improve the lives of people in India and across the globe," he said.

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