Morgan Stanley India Infrastructure has procured an undisclosed stake in Indian-based tech-connectivity company iBus Network and Infrastructure for Rs. 150 crores.
iBus provides various tech solutions, including in-building wireless solutions, outdoor small cells, and last-mile connectivity solutions to mobile operators. It has deployed infrastructure in over 200 residential and commercial retail sites across India with a tenanted area of 276 million sq. ft.
“Connectivity is fundamental to a large developing digital economy like India. Our mission is to build an end-to-end scalable, intelligent, and convergent connectivity ecosystem. Distributed antenna systems like in-building solutions have been fragmented and siloed for a while. Through this investment, iBus will build scale and eliminate inefficiencies to fast track the essential digitalization of our economy,” said Ram Sellaratnam, iBus Co-Founder. Cipher-Plexus Capital Advisor took on the role of exclusive adviser for the transaction.
iBus’ business model is related to India’s data consumption and digital infrastructure. With an average monthly data consumption of 11GB, India accounts for the world’s highest per capita data consumption. Nearly 80% of data is consumed indoors, where telecom coverage is the least adequate. The expansion of mobile data consumption and the transition from 4G to 5G will require indoor telecom network densification.
“Our investment will enable iBus to drive scale and consolidation in an industry that is fragmented while also enhancing the mobile user experience,” said Raja Parthasarathy, Managing Director and Co-Head, Morgan Stanley India Infrastructure.
iBus was founded in 2013 by three first-generation entrepreneurs. Morgan Stanley India previously raised its capital from several investors and family offices. Morgan Stanley India Infrastructure is the Indian infrastructure investing platform of Morgan Stanley Infrastructure Partners.
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