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NEW DELHI: International Finance Corporation (IFC), a member of the World Bank Group, has picked a minority stake in the National Investment and Infrastructure Fund (NIIF)-backed iBUS for Rs 280 crore (or $34 million).
“This strategic partnership is set to further bolster iBUS’s plans for both domestic and international growth,” the Karnataka-headquartered company said on Tuesday, adding that the funds will enhance its ability to deliver solutions for in-building connectivity, outdoor small cells (a radio access point), managed Wi-Fi services and intelligent Internet of Things (IoT).
“IFC’s investment aligns with our vision to transform the digital infrastructure landscape. With their unparalleled expertise and global reach, IFC will play a pivotal role in helping us scale our operations, enter new markets, and deliver world-class digital solutions,” said Subash Vasudevan, Chief Business Officer, iBUS Network.
This announcement follows NIIF’s acquisition of a majority stake in the managed Wi-Fi services provider for $200 million earlier this year. Morgan Stanley had invested Rs 150 crore ($21 million) in 2021 to acquire a majority stake in iBus. The American investment bank and financial services firm, though, partially exited and remains a minority stakeholder.
In 2022, global financial services group Nomura also invested Rs 125 crore in iBus to enable the startup to consolidate and transform digital infrastructure in Wi-Fi managed services and other value-added services.
This is IFC’s first investment in the infrastructure technology (infratech) sector in the Asia-Pacific region and aligns with the organisation’s broader strategic focus on improving access to high-quality digital connectivity and supporting India’s digital transformation, as per iBUS’ statement.
“Boosting reliable digital connectivity is critical to bridging the digital divide. IFC’s investment in iBUS Network reflects our strong commitment to supporting India’s vision of a digital inclusive economy,” said Wendy Werner, IFC India Country Head. “Through this partnership, we aim to strengthen last-mile connectivity and elevate the quality of digital infrastructure for both individuals and businesses in the country.”
“We are delighted to welcome IFC as a partner alongside National Investment and Infrastructure Fund (NIIF) in iBUS Network,” said Vinod Giri, Managing Partner – Master Fund at NIIF. “IFC’s investment is not only a testament to iBUS’s robust growth trajectory and strong fundamentals, but also underscores the critical role that digital infrastructure will play in India’s growth story.”
