In Short:
The International Finance Corporation (IFC) is investing Rs 280 crore ($34 million) in iBUS, a company supported by the National Investment and Infrastructure Fund (NIIF). This partnership will help iBUS expand its digital services and improve connectivity. IFC aims to boost digital infrastructure in India, supporting its digital transformation and bridging the digital divide, as highlighted by company officials.
Investment from International Finance Corporation
International Finance Corporation (IFC), a member of the World Bank Group, has acquired a minority stake in iBUS, which is backed by the National Investment and Infrastructure Fund (NIIF), for ₹280 crore (approximately $34 million). This strategic partnership is anticipated to enhance iBUS’s ambitions for both domestic and international expansion.
Enhancing Digital Infrastructure
The investment will bolster iBUS’s capabilities in delivering solutions for in-building connectivity, outdoor small cells, managed Wi-Fi services, and intelligent Internet of Things (IoT) applications. Subash Vasudevan, Chief Business Officer of iBUS Network, stated, “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.”
Background of Investment Activity
This announcement comes on the heels of NIIF’s acquisition of a majority stake in the managed Wi-Fi services provider earlier this year for $200 million. In 2021, Morgan Stanley had initially invested ₹150 crore ($21 million) to acquire a majority stake in iBUS, although it has since partially exited and now holds a minority interest. Additionally, in 2022, Nomura, a global financial services group, invested ₹125 crore in iBUS to support the startup’s efforts in consolidating and transforming digital infrastructure in the Wi-Fi managed services space.
IFC’s Strategic Focus in the Region
This marks IFC’s inaugural investment in the infrastructure technology (infratech) sector within the Asia-Pacific region, aligning with the organization’s broader strategic initiative to enhance access to high-quality digital connectivity and to support India’s digital transformation. Wendy Werner, IFC India Country Head, remarked, “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 digitally inclusive economy.”
Looking Ahead
“We are delighted to welcome IFC as a partner alongside NIIF in iBUS Network,” stated 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.”
