NIIF Secures Majority Stake In IBus For $200 Mn

Republished By Plato

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India’s National Investment and Infrastructure Fund Limited (NIIF), a quasi-sovereign fund, has reportedly finalized plans to acquire a controlling stake in Bengaluru-based iBus, a leading provider of indoor connectivity solutions, for a sum of $200 million (INR 1,658 Crores).

With Morgan Stanley Infrastructure Partners among its investors, iBus intends to utilize the investment proceeds to fuel its expansion in the realm of digital infrastructure solutions, as reported by Mint.

NIIF will execute the investment through its Master Fund, which closed at $2.34 billion in 2020. While this fund primarily targets infrastructure projects, NIIF’s other funds extend support to diverse sectors.

This strategic funding round is poised to become the largest infusion of capital for iBus to date. Previous reports indicated the startup’s aspirations to raise funds to broaden its service offerings, particularly in the realms of 5G, IoT, and Wi-Fi.

Upon completion, this investment will mark the Master Fund’s second foray into digital infrastructure.

Established in 2013, iBus is spearheaded by Ram Sellaratnam, Subash Vasudevan, and Sunil Menon. The company specializes in developing digital infrastructure solutions, including Wi-Fi connectivity solutions tailored for buildings, with ongoing initiatives in IoT ventures.

In 2021, Morgan Stanley injected approximately INR 150 Crores (then $21 million) into iBus through its North Haven India Infrastructure Fund. Subsequently, additional investments flowed in from Nomura Holdings of Japan (INR 125 Crores) and a consortium of investors, including Vallabh Bhansali of Enam, N Squared of the USA, and T.V. Mohandas Pai.

iBus has charted a strategic growth trajectory, marked by pivotal acquisitions like Ubico Networks and the Wi-Fi assets of D-VoiS Communications, bolstering its presence across sectors such as education, co-living, and hospitality.

In a complementary move, iBus recently acquired Shelter Construction International Ltd, further reinforcing its position in small-cell and optic-fiber networks to enhance last-mile telecom connectivity.

iBus faces competition from industry players like Qihoo 360 Technology, Houseparty, and Kdan Mobile Software in the ever-evolving landscape of digital infrastructure solutions.

According to Market and Market’s report, the 5G Infrastructure Market is projected to reach $47.78 billion by 2027, indicating promising growth prospects for companies like iBus.