International Finance Corporation (IFC), a member of the World Bank Group, has invested INR 280 crore ($34 million) in Bengaluru-based digital infrastructure solutions provider, iBUS. This strategic investment will assist iBUS in improving its core service, and digital infrastructure and marketing its products across the international market.
Image Solutions: iBUS
Funding Details
The funding round is significant to iBUS as it is a blended capital comprising equity and debt. The investment from IFC also offers funding for business development, and experience and connections essential for iBUS when entering new markets. As a result of the transaction, IFC has invested in the form of equity stakes although in a non-controlling manner. This investment comes from a fresh round of funding from the NIIF which bought a 52% stake in iBUS for INR 1,658 crore ($200 million) this year. The latest funding round also saw early investors such as Morgan Stanley and high-net individual investors leaving with their returns ranging between 20-45%.
Vision of iBUS
iBUS was founded in 2013. iBUS mainly focuses on in-building telecom network solutions and Wi-Fi managed services. iBus is positioned as a market leader in the digital infrastructure business, providing highly effective solutions that improve connectivity and network performance inside buildings. The services of iBUS play a significant role in avoiding communication breakdown in densely populated areas such as offices, malls, and apartment buildings.
The chief business officer of iBUS, Subash Vasudevan said, “With this strategic investment, our focus will be on international expansion. The fund will be equally distributed between organic and inorganic expansion.”
Quotation Source: inc42
Annual Growth Rate and Expansion Plans of iBUS
iBUS has a Compound Annual Growth Rate (CAGR) between 60-65% for the past 5 years. In the financial year 2024, iBUS had a 40% y-o-y growth and a total of around INR 256 crore in revenue. The fresh capital from IFC will go a long way in helping iBUS to implement its strategic expansion plans. The management of iBUS wants the funds to be split in half between organic investments and inorganic investments.
Global reach and expertise of IFC
IFC has assisted iBUS in expanding its operations beyond India and now the organization is ready to grow its market share. The international contact and experience of the IFC will be assets when it comes to dealing with the intricacies of going global. Similarly, iBUS can use the connections within IFC to secure partnerships and access new clients and markets. IFC’s investment strategies, including investing in companies like iBUS, focus on promoting innovation and improving digitalization to advance economic and social integration.
Conclusion
IFC’s INR 280 crore investment in iBUS is a major achievement for the company, given the current status of digitalization across the globe. With iBUS continuing to grow its market presence in overseas markets, the company is well-positioned to become a major force in promoting digitalization and innovation within the digital infrastructure sector.
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