iBus Acquires Firefly Networks from Airtel and Vodafone Idea for ₹9 Crore

In a significant development in the telecom sector, Bharti Airtel and Vodafone Idea, two major players in the Indian telecom landscape, have officially exited their joint venture, Firefly Networks Limited. The two companies sold their entire stakes to iBus Network and Infrastructure Private Limited for a total of ₹9 crore, marking a full shift of control over the Wi-Fi infrastructure company to iBus.

The joint venture, originally established to leverage the growing demand for Wi-Fi across India, was equally owned by Airtel and Vi, each holding a 50% stake. The agreement will see both companies earning ₹4.5 crore each from the transaction. The deal is expected to reach completion within the next 30 business days, contingent on standard closing conditions.

The Evolution of Firefly Networks

Firefly Networks has carved a niche in deploying and monetizing Wi-Fi hotspots throughout the country. It is at the forefront of providing Wi-Fi services in crucial areas such as airports, hospitals, malls, and corporate parks. With over 10,000 access points spread across 40 cities, Firefly boasts a large user base that includes 2.5 million daily users. This expansive network covers high-profile partnerships with 28 airports and renowned entities like GMR, Fortis, and DLF Cyber.

However, the changing market conditions and strategic priorities of Airtel and Vodafone Idea shifted their focus elsewhere, leading to this divestment. The exit aligns with their newer strategies prioritizing high-speed 5G and wireless networks as more essential to their long-term growth and profitability.

The New Journey with iBus Network

iBus Network and Infrastructure has emerged as a prominent entity in providing in-building telecom solutions and Wi-Fi managed services. Supported by key stakeholders such as the National Investment and Infrastructure Fund (NIIF) and the International Finance Corporation (IFC), iBus plans to enhance its digital infrastructure reach through this acquisition.

Previously, Firefly had explored other acquisition opportunities. Negotiations were held with tech giant Cisco in 2022 and later with the London-based Digital Infrastructure Accelerator (DIA) in partnership with a Middle Eastern fund in 2023. However, both attempts did not materialize, making the current deal with iBus a pivotal moment. The acquisition represents not only a growth opportunity for iBus but also a strategic diversification, as it now holds the full potential to drive innovations in technology-neutral wireless solutions.

This transaction does not fall under related-party deals, further underscoring the independent nature of the arrangement. Firefly’s transition from a joint venture to a fully owned entity by iBus sets a stage for renewed focus and facilitates a concentration on expanding their services beyond traditional infrastructure models.