Tikona to raise $25 mn from IFC

Fund raising to support the company's $50 million investment plans

International Finance Corporation (IFC) is considering an equity investment of $25 million in Goldman Sachs Investment-backed Tikona Digital Networks, which is engaged in providing next-generation wireless broadband services. The investment is aimed at supporting the company’s plan to expand its existing business in India, for which the company plans to raise around $50 million.

Currently, Tikona is present across 25 cities; it plans to expand to tier-III and new urban and semi-urban markets that do not have access to broadband. “Tikona is also well poised to deploy 4G LTE network and provide coverage in rural tehsil towns in its five circles to homes, small and medium businesses, schools, health care centres, e-government kiosks, etc. The solution is also relevant to other global markets where the last-mile wire line plant is scantily built,” says the company’s project document.

Tikona was founded by a team of telecom professionals led by Chief Executive Prakash Bajpai. Key shareholders include funds managed by the Goldman Sachs Investment Partners team, Indivision India Partners, Oak India Investments and L&T Infrastructure Finance.

Through the next five-six years, the business’s expansion is expected to provide jobs to 350 qualified professionals and create 20,000 indirect jobs in support and facilitation functions. Tikona has an all-India category-A internet service provider (ISP) licence and a national long-distance (licence issued by the Department of Telecommunications. It provides various services, WIBRO — a-high-speed, low-cost wireless broadband internet solution for households.

Tikona has also leveraged its network to provide secure and reliable broadband for enterprises. Tikona Infinet offers a suite of enterprise solutions, including managed data networks such as virtual private networks and managed internet services such as access and WLAN.

Tikona provides enterprise connectivity services to about 1,500 small, medium and large enterprises.