Reliance Retail Ventures, the retail arm of Reliance Industries, has bought a 54% stake in Adverb Technologies for Rs 983 crore ($132 million).
Even after this acquisition, India-based Adverb will continue to operate independently and will use the proceeds from RIL to expand its overseas business and set up its largest robotics manufacturing unit in Noida.
Adverb Technologies co-founder and CEO Sangeet Kumar said that the unit will be fully automated. The CEO of Adverb has further said that with this investment, Reliance will become the company with 54 per cent stake in Adverb and will also be the largest shareholder of Adverb. Reliance Industries was already an important customer of ours. With which we have built a highly automated warehouse for the Jio Mart grocery business. The trust we have in each other as we have already worked together is what has led to this partnership.
With this new investment, the valuation of Adverb has come down from $265 million to $270 million (about Rs 2000 crore). Adverb already has a production unit in Noida. Where it manufactures about 10,000 robots per year. Adverb has also said in a base statement that our strategic partnership with Reliance Retail will give us access to developments in 5G technology, new battery technology to be developed through the New Energy Initiative, carbon fiber. With which we will be able to make more developed and economical robots.
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Adverb further said that we are a profitable company and will use the money from this deal to expand overseas business and increase the capacity of our production unit. Currently, 80 per cent of Adverb’s revenue comes from India, but it is expected that domestic and foreign business will account for half of the company’s earnings in the next 4-5 years.
Software revenue accounts for 15 per cent of our revenue, which is expected to grow further. It is worth mentioning that Adverb was established in 2016. It is expected that in the current financial year, the company’s revenue can see a growth of 100 percent and it can reach Rs 400 crores from Rs 200 crores in the last financial year. It should also be mentioned that the company has subsidiaries in Singapore, Netherlands, USA and Australia.
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