RIL subsidiary invests again in automotive AI startup Netradyne

Mumbai:reliance Industries Ltd (RIL) has invested $8 million in San Diego-headquartered Netradyne Inc., an artificial intelligence (AI) start-up, through its wholly owned subsidiary, Reliance Industrial Investments and Holdings Ltd (RIIHL).

In June, RIIHL had invested $16 million in the start-up that focuses on fleet management, automotive, security and surveillance.

The company’s latest investment translates into a 37.4% equity stake in the firm, RIL said in an exchange filing.

RIIHL also plans to raise ₹2,000 crore to meet funding requirements and invest in startups, said two people aware of the matter. “The funds will be raised through optionally convertible preference shares at a dividend rate of 6%,” said the first person mentioned above, requesting anonymity. Optionally, convertible preference shares are issued on a rights basis to existing equity shareholders.

RIL did not respond to an email query seeking further details till press time.

“RIIHL is raising the funds to finance similar acquisitions and also for general corporate purposes,” said the second person, also requesting anonymity.

RIIHL had raised ₹4,000 crore in June through optionally convertible preference shares to meet the group’s funding and investment requirements, including for its telecom venture, Reliance Jio Infocomm Ltd.