Internet service provider Tikona Digital Networks has raised Rs 237.26 from Goldman Sachs Investment Partners, Indivision India Partners, Oak India Investments and Green Lotus. The four funds are taking a 69.9% stake in the firm founded by telecom veterans Rajesh Tiwari and
Prakash Bajpai. Green Lotus is an entity owned by Goldman Sachs.
While Bajpai was the president and CEO at Reliance Communications before founding Tikona, Tiwari was Group Director at Reliance-ADAG. Tikona plans to issue 38.86 lakh compulsorily convertible debentures (CCDs) and 34,560 equity share to the investors. Upon conversion of
these stake of private equity investors will be 48.99%. The firm will issue additional CCDs to both promoters and investors, which will take latters stake to 69.9%.
Broadband services in India are provided by major telecom players Reliance and Airtel and also state run players like BSNL and MTNL. Then there are also independent providers like Sify and Spectranet in the market.
There have been several control deals in the internet service provider (ISP) space. UK fund Ashmore Investments picked up a pick up a 74% stake in Mumbai-based Broadband Pacenet, a company founded by former Zee group executives. Citi Venture Capital International also has a
more than 80% stake in You Telecom, a broadband internet service provider.
