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MUMBAI: The Reliance family office, the private company of Mukesh Ambani, is close to acquiring a majority stake in Embibe.com, an online education portal, for close to Rs 100 crore, two people with knowledge of the matter said.
A transaction will likely see the promoters and current investors in the Mumbai-based education portal, which prepares students for competitive entrance tests, selling their stake. “The deal is as good as done,” said one person.
“The discussions were on for some time after the Reliance family office directly approached the portal.” There is no investment banker involved in the deal, he added.
Reliance Industries and Embibe did not respond to ET’s emails sent on April 4, seeking comment on the matter. The acquisition has been planned keeping in mind the requirements of Reliance Jio Infocomm, the telecom arm, according to another person familiar with the matter.
“Reliance would need content when data becomes big, especially as Jio keeps increasing its holding in this segment. Education is only one sector where the data play was missing from the company’s standpoint, which would be complete after the acquisition,” he said.
Embibe had acquired 100Markes, an engineering and medical entrance exam training portal, in a cashplus-stock deal in 2015 for an undeclared amount. Both people told ET that the Reliance family office is trying to acquire 100% of Embibe.
A deal with Reliance would allow two funds that invested in Embibe in 2013 to exit. Kalaari Capital and Lightbox Ventures had put in about $4 million, or close to Rs 25 crore together. Both funds were early-stage investors in the company that was founded in 2012 by Aditi Avasthi.
Embibe was initially backed by Sandeep Murthy, who led the India investments of some Silicon Valley venture capital firms, according to media reports. Both funds would make “healthy returns” from the deal, one person said. Emails sent to the funds on Saturday did not elicit any response. Embibe helps students to prepare for engineering, medical and banking entrance examinations.