Reliance Retail Ltd, the retail business of Mukesh Ambani-controlled conglomerate Reliance Industries Ltd, has picked up 16% stake in a California-based firm that provides operating system for its internet-enabled low-cost mobile, JioPhone.
As part of the all-cash deal, Reliance Retail has dished out $7 million (Rs 45.49 crore) for the shareholding in the mobile operating system provider KaiOS Technologies, Inc., Reliance Industries said in a stock-exchange disclosure. The firm has subscribed to 1,904,781 common shares at $3.675 each.
Reliance Retail distributes JioPhone, which runs on a mobile operating system called KaiOS.
Reliance Industries said the investment can result in synergies with Reliance Retail’s current investments in affordable digital devices and also with the digital services initiatives of the group.
Reliance Retail is a step-down subsidiary of Reliance Industries. It is into retail business and operates a chain of neighbourhood stores, supermarkets, wholesale cash-and-carry stores and speciality stores.
In the consumer electronics category, it operates Reliance Digital, Reliance Digital Express Mini and Jio stores.