Rane Holdings Ltd, the parent of auto component manufacturer Rane Group, has acquired a majority stake in Internet of Things (IoT) startup Telematics4U Services Pvt. Ltd, it said in a stock-exchange filing.
Chennai-based Rane Holdings acquired a 70% stake for Rs 1.17 crore via subscription of fresh stock and share purchase from existing shareholders. It will also invest Rs 27 crore in Telematics4U over the next two years to help the company scale up its operations, it said in the filing.
Founded in 2009, Telematics4U offers end-to-end solutions for transportation and asset-tracking to public, private, and social sector customers in India, South Asia, the Middle East, and Africa. Its solutions enable customers to manage their supply chain operations and control critical assets.
Telematics4U posted a revenue of Rs 18.6 crore for FY17.
“We foresee that this acquisition has potential to open up opportunities for us to expand our connected vehicle product portfolio,†said Vinay Lakshman, Rane Group.
Founded in 1929, Rane Group supplies composite brake blocks, engines valves, valve guides, tappets, solid and energy-absorbing steering columns, intermediate shafts and machined aluminium die cast products. It is also engaged in the distribution of auto components.
In 2014, the group had hiked its stake in Bangalore-based SasMos HET Technologies Ltd, which is engaged in the manufacturing of interconnection systems and wiring harness for the defence and aerospace industry.
In the telematics segment, Gurgaon-based MSD Telematics Pvt. Ltd acquired vehicle-tracking solutions provider Heuristics Info Systems Pvt. Ltd for an undisclosed amount in an all-cash deal in January.
In December 2016, Bangalore-based Vehico, which provides a telematics-based fleet management and analytics solution, received an undisclosed amount of angel investment from Calcutta Angel Network and Appliyifi, an online platform for startup investments.