34980 - Tikona Broadband

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Summary of Investment Information

Project Number

34980

Company Name

TIKONA DIGITAL NETWORKS PRIVATE LIMITED

Date SPI Disclosed

Apr 25, 2014

Country

India

Region

South Asia

Projected Board Date

May 27, 2014

Environmental Category

C - No Impact

Status

Completed

Last Updated Date

Jun 12, 2021

Department

TMT, Venture Capital & Funds

Industry

Telecommunications and Technology

Previous Events

Approved : May 23, 2017
Signed : Aug 22, 2014
Invested : Nov 12, 2014

Sector

Cable and Broadband

Project Description

Tikona Digital Networks (“Tikona” or the “Company”) is engaged in building next generation wireless broadband services for home and enterprise customers in India. It holds an all-India Category-A Internet Service Provider (‘ISP’) license and a National Long Distance (‘NLD’) license issued by the Department of Telecom, through which it provides the following services:

WIBRO - Broadband internet access for the mass-market
Tikona WIBRO is a high speed, low cost wireless broadband internet solution for households, currently offered in the top 25 cities of India.
Enterprise - Comprehensive suite of enterprise connectivity services
Tikona has also leveraged its network to provide secure and reliable broadband for enterprises. Tikona Infinet Ltd. (‘TIL’) offers a suite of enterprise solutions including managed data networks such as Virtual Private Networks (‘VPN’) and managed internet services such as Access and WLAN. Tikona currently provides enterprise connectivity services to a diversified base of over 1,500 small, medium and large enterprises across India.
Tikona also has the licenses to use 20MHz of spectrum in the 2.3 GHz band (auctioned in June 2010) in five circles – Gujarat, Rajasthan, Himachal Pradesh, UP (East) and UP (West). This spectrum could potentially be used for rolling out 4G-LTE services for home and mobile data to address the rapidly growing broadband needs in the country.

IFC is considering an equity investment in the company to support the expansion of the existing business in India.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	25.0
Equity	0.0

Development Impact

i. Technological innovation driving broadband penetration through increased capacity, higher speeds and lower tariffs: Tikona''s innovative wireless broadband solution solves multiple problems including affordability and capacity in India''s underserved market. This unique, low-cost network is rapidly scalable and can deliver high-quality broadband to India''s price sensitive, data-hungry mass market. Tikona is currently present in 25 cities in India and has potential to expand to Tier III and new urban and semi-urban developments which current do not have access to broadband. Tikona is also well poised to deploy 4G LTE network and provide coverage in rural Tehsil towns in its 5 Circles to homes, SMBs, schools, health care centers, e-gov kiosks etc. The solution is also quite relevant to other global markets where the last mile wire line plant is scantily built.

ii. Direct and Indirect Employment: Expansion of the business will provide jobs to c.350 qualified professionals over the next 5-6 years as well as create c.20,000 indirect jobs in support and facilitation functions.

iii. Private Sector Enterprise: The proposed investment will promote private sector enterprise in the following manner:
o Facilitate the growth of SMEs: Enable access to low cost, customised data solutions for small and medium businesses including a host of applications such as cloud-based services
o Drive efficiency and competition as an independent, focused, pan-India player in the broadband market
o Economic growth: Tikona''s initiatives in the broadband space will help boost broadband penetration in India''s lesser and un-penetrated areas. Much like the penetration of voice services in the previous decade, roll out of broadband services is a powerful economic "equalizer" which will enable better access to knowledge and opportunities, driving productivity improvements for individuals and enterprises as well as overall economic growth.

IFC has strong additionality in this investment by way of:
i. Long, term patient capital: IFC will provide long term equity financing to a well-differentiated player in a high-growth industry with significant potential to drive innovation and economic development
ii. Stamp of approval: IFC investment will demonstrate support for a unique and cost-effective technology solution offering high quality broadband services and help establish the scalability and sustainability of a solution that is relatively new to India
iii. Emerging market experience: Low cost, high capacity broadband services can address the bandwidth needs of several emerging economies in Asia and Africa where IFC enjoys high credibility, strong brand name, deep market understanding and long-term stakeholder relationships with governments and regulators
iv. Global knowledge and experience: The Company''s management team can benefit from IFC''s global experience in the broadband sector and learnings from other geographic markets

E&S Category Rationale / Risks and Mitigation

The key E&S risks in this project will be in the management of Tikona''s human resources, leased spaces, and equipment. Those risks are expected to be low, so this project is classified as Category C according to IFC''s Environmental and Social Review Procedure. Tikona will be required to implement human resources policies and procedures -- and otherwise to manage E&S risks in its project -- in compliance with IFC Performance Standards.

Contacts

For Inquiries About the Project, Contact

Tikona Digital Networks Private Limited
3A, 3rd Floor, “Corpora” Building
LBS Marg, Bhandup (West)
Mumbai 400 078
India
Phone: +91 22 4183 0000
Website: http://www.tikona.in

For Inquiries and Comments About IFC, Contact

General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster

Local Access of Project Documentation

Tikona Digital Networks Private Limited
3A, 3rd Floor, “Corpora” Building
LBS Marg, Bhandup (West)
Mumbai 400 078
India

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. Its purpose is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Summary of Investment Information

Project Description

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation

Similar Projects

Contacts

Projects

Summary of Investment Information

Project Description

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

Total Project Cost and Amount and Nature of IFC's Investment

IFC's Investment as Approved by the Board

Location of Project and Description of Site

Development Impact

Anticipated Impact Measurement & Monitoring (AIMM) Assessment

IFC's Role and Additionality

E&S Category Rationale / Risks and Mitigation

Environmental & Social Categorization Rationale

Environmental & Social Management System (ESMS)

Press-Release

Related Environmental Document

Similar Projects

Contacts

Information on E&S Complaints and Grievance Mechanisms

Disclaimer