NIIF To Pick Up Majority Stake In iBus For $200 Mn

SUMMARY

The company which counts Morgan Stanley Infrastructure Partners as its existing investor will use the proceeds to finance its expansion

NIIF's commitment marks its primary investment in iBus, intending to facilitate the company's growth in digital infrastructure, particularly in areas like 5G, IoT, and Wi-Fi connectivity within buildings

This infusion from NIIF is poised to be iBus's largest fundraiser yet, supplementing previous investments from Morgan Stanley, Nomura Holdings, and others

India’s quasi-sovereign fund National Investment and Infrastructure Fund Limited (NIIF) has reportedly agreed to acquire a majority stake in Bengaluru-based iBus, a provider of connectivity solutions inside buildings, for $200 Mn (INR 1,658 Cr).

The company, which counts Morgan Stanley Infrastructure Partners as its investor, will use the proceeds to finance its expansion in digital infrastructure solutions.

Mint reported the development first.

NIIF will be investing via its Master Fund, which closed at $2.34 Bn in 2020. While this fund invests only in infrastructure projects, its other funds back other sectors as well.

The NIIF’s funding is likely to be the largest funding so far for iBus. Last month, Mint was the first to report that the startup was in discussions to raise capital to expand its services and solutions to 5G IoT, and Wi-Fi.

Once concluded, this will be Master Fund’s second investment in digital infrastructure.

Founded in 2013, iBus is promoted and led by Ram Sellaratnam, Subash Vasudevan and Sunil Menon. It builds digital infrastructure solutions, including Wi-Fi connectivity within buildings, with ongoing ventures in IoT projects.

In 2021, Morgan Stanley injected capital of around INR 150 Cr (then $21 Mn) into the company through its North Haven India Infrastructure Fund.

This was followed by investments from Japan’s Nomura Holdings worth INR 125 Cr and $40 Mn from investors including Enam’s Vallabh Bhansali, US-based N Squared and T.V. Mohandas Pai.

iBus has followed a trajectory that includes strategic acquisitions like Ubico Networks and D-VoiS Communications’ Wi-Fi assets, fortifying its presence in various sectors such as education, co-living, and hospitality.

In tandem, iBus’s recent acquisition of Shelter Construction International Ltd further solidifies its footing in small cell and optic fibre networks, to enhance last-mile telecom connectivity.

iBus compete with the likes of Qihoo 360 Technology, Houseparty, and Kdan Mobile Software.

As per a report by Market And Market, the 5G Infrastructure Market is expected to reach $47.78 Bn by 2027.