NIIF opens a $200 million wallet for this digital infra firm

livemint.com:

MUMBAI : Government-backed National Investment and Infrastructure Fund (NIIF) has agreed to invest $200 million ( ₹1,658 crore) in digital infrastructure company iBus for a controlling stake, two people aware of the development said. iBus Network and Infrastructure Pvt. Ltd, which is backed by Morgan Stanley Infrastructure Partners, will use the money to finance its expansion.

“This is largely a primary investment," the first of the two people cited above said on condition of anonymity. NIIF is investing through its Master Fund, which closed at $2.34 billion in 2020. While this fund invests only in infrastructure projects, NIIF’s other funds invest in other sectors as well.

NIIF was set up by the government in 2015 to support India’s infrastructure sector. The Master Fund has previously invested in companies such as Ayana Renewables and port operator DP World. Mint first reported on 29 January 2023 that iBus was in talks to raise capital to expand its services and solutions to 5G, internet of things (IoT) and Wi-Fi.

The company had appointed Avendus Capital to arrange the transaction. Queries sent to NIIF, iBus Networks, and Avendus Capital remained unanswered till press time. Bengaluru-based iBus builds digital infrastructure such as Wi-Fi connectivity within buildings, and is testing projects on IoT.

The company expects rising 5G use to push up data consumption and support its growth. The NIIF funding is likely to be the largest fundraise so far for iBus. In 2021, Morgan Stanley invested ₹150 crore (then $20 million) in the company through its North Haven India Infrastructure Fund.