Tikona Digital Networks, a wireless internet broadband service provider, today said it will expand its presence to 50 cities across the country by the end of this year with an investment of Rs 500 crore.
Tikona Digital Networks (TDN), which currently operates across 10 cities, has recently raised about Rs 500 crore from three private equity (PE) players -- Goldman Sachs Investment Partners, Indivision India Partners and Oak India Investments.
"We will offer services across 50 cities by the end of this year...We have raised about Rs 500 crore through PE, which is being used for the expansion," TDN MD and CEO Prakash Bajpai told reporters here.
The company offers wireless broadband service , starting at Rs 449. It has also bundled anti-Virus solution to its offering.
The PE investors now hold about 70 per cent combined stake in the company. It is also looking at raising more funds through investors.
"There is a sectoral cap of 74 per cent and hence we need government approval for raising funds. We have already applied," he said.
TDN had applied for increasing the FDI in the firm to 74 per cent by issue of compulsorily convertible debentures and equity shares to existing and new foreign investors.
When asked about subscriber base, Bajpai said: "Post expansion, we would be able to service about 3-4 million users. However, it is difficult to comment a specific number."