Indian Economy News

Reliance Retail buys 54% stake in robotics startup Addverb for $132 mn

  • IBEF
  • January 19, 2022

According to a top official of Addverb, Mukesh Ambani's Reliance Retail has purchased a 54 percent share in the domestic robotics startup for USD 132 million (about Rs 983 crore).

Sangeet Kumar, co-founder and CEO of Addverb Technologies, told PTI that the company will continue to function independently and that the cash obtained from Reliance will be used to develop the company's business worldwide as well as to build one of Noida's largest robotic production facilities.

The company already has a factory in Noida that manufactures 10,000 robots every year.

"With this investment, Reliance will own around 54% of Addverb. They become the company's major shareholder. Reliance was already a valued client with whom we had collaborated on the design and delivery of highly automated warehouses for their Jio-Mart grocery business. There was already a level of familiarity and trust in place, which led to this association," Kumar explained.

He went on to say that the strategic alliance with Reliance Retail will allow them harness 5G, battery technology through new energy initiatives, and improvements in material sciences (carbon fibre) to offer more advanced and inexpensive robots.

"We are a successful business. The cash will be used to expand our manufacturing facilities and extend our operations in other countries."

Currently, India accounts for 80% of our revenue; but, in the next 4-5 years, this mix is likely to shift to a 50-50 split between India and global operations. "Our software revenues account for 15% of our entire income, and they are likely to expand dramatically," Kumar said.

Addverb, which was founded in 2016, hopes to close the current financial year with a revenue of Rs 400 crore, up from Rs 200 crore a year ago.

"We hope to be a billion-dollar firm in sales in the next 5-6 years. Everything is done in India: design, manufacturing, and delivery all around the world," Kumar explained.

Addverb has four subsidiaries: one in Singapore, one in the Netherlands, one in the United States, and one in Australia.

"In terms of employment, each of these subsidiaries will grow. Manufacturing will take place in India, with our overseas business assisting in the design of the robots," Kumar stated.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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