Mukesh Ambani-led Reliance Industries Ltd is in the final stages to buy a majority stake of 88 per cent in Ahmedabad-based renewable energy startup Kanoda Energy Systems for ₹75 crores (about $10.7 million), in an all-cash deal. The investment will be carried out by RIL’s subsidiary Reliance Industrial Investments and Holdings Limited (RIIHL). The total investment will be completed by March 2020, according to a stock exchange filing by Reliance Industries Limited.
Kanoda was founded by Dr Kinjal Jani in 2009 and provides technology-driven renewable energy solutions. The firm provides services like solar advisory, product design and technology validation. A few months back, the startup has entered into some new verticals which include engineering, procurement & construction (EPC) and operations & management (O&M) of solar photovoltaic systems.
With an annual turnover of ₹10.54 crores, the company recorded ₹81.38 lakhs in profit last financial year. Earlier in FY17, the company recorded ₹1.63 crores in revenue with ₹16.54 lakhs in profit. Prior to that in FY16, Kanoda Energy did not make any sales while it suffered ₹51,000 in losses.
Reliance Industries has been quite active with its acquisitions in the startup ecosystem. Earlier in December 2018, it picked up a majority stake in a Mumbai-based digital media startup New Emerging World of Journalism (NEWJ) by investing around ₹1 crores initially. Last week, RIL acquired a 5.56 per cent stake in VAKT Holding for ₹35 crores.