Wireless broadband service provider Tikona Digital today said it has raised USD 45 million from investors, including IFC, and the funds will be used to expand its network.
"Tikona is pleased to announce the successful completion of a USD 45 million fund raise. The round was led by IFC with a USD 25 million investment and existing investors, funds managed by Goldman Sachs Asset Management, Oak Investment partners, Everstone Capital and L&T Infrastructure Finance Co Ltd, collectively invested in USD 20 million," the company said in a statement.
The company said capital raised will be used to expand Tikona's broadband network in existing and new cities.
"We are pleased to have IFC as an investor given their understanding of the broadband sector across the globe and long term approach to business investments," Tikona CEO and Managing Director Prakash Bajpai said.
Tikona said it has built a low cost, high capacity, broadband solution and is already serving over 225,000 homes in the top 25 cities of the country and the business model is now ready for more cities.
Tikona also owns 20 MHz, 4G spectrum in 2,300 MHz band in 5 telecom circles of Gujarat, UP-East, UP-West, Rajasthan and Himachal Pradesh, covering 28 per cent of the population of India, positioning it well for 4G data services in the future, it added.
"IFC's investment in Tikona will facilitate expansion of broadband infrastructure to middle income households and small and medium businesses, particularly in priority states of Madhya Pradesh, Chhattisgarh, Rajasthan and Uttar Pradesh," TMT investments at IFC South Asia Lead Ruchira Shukla said.