iBus Networks eyes ₹2,000 cr revenue by 2028, bets on digitization of buildings
New Delhi: Bengaluru-based iBus Networks is aiming for a revenue of ₹2,000 crore in the next four to five years, with Ebitda (earnings before interest, taxes, depreciation and amortization) of ₹500 crore, as it looks to become an infrastructure tech company by offering digital solutions for last-mile connectivity.
Ram Sellaratnam, co-founder and chief executive officer (CEO) at iBus Networks, told Mint in an exclusive interaction that the company was looking at Ebitda of around ₹120 crore by FY26, with a revenue ₹400-450 crore. For FY25, the company expects a revenue of nearly ₹290 crore.
The Morgan Stanley Infrastructure Partners-backed company that specializes in offering Wi-Fi and Internet connectivity within buildings, plans to ride the big demand for digitization of real estate across India.
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“About 90 million sq. ft of real estate is coming up every year that has to be digitized, which is double of what it was three to four years ago. We’re putting together the stack, which requires a convergence of both Wi-Fi and mobility networks, and offers security. It will be made in India for not just India but for the world,” Sellaratnam said.
Part of the digitization opportunity will come from brownfield or existing buildings, which have to be equipped with Wi-Fi solutions. These include, for instance, hospitals and government buildings such as the Supreme Court or the Reserve Bank of India, and other public sector entities that rely on digital infrastructure to provide services to people.
“We see a huge potential there. Today, we’re doing 1 billion sq. ft coverage in iBus’s overall portfolio, which should scale to 10 billion sq. ft in the next four to five years,” he added. The company has begun offering energy management solutions on top of connected infrastructure services, which enable it to monitor energy consumption and control the usage, thus increasing efficiency in a network.
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With an organic compounded annual growth rate (CAGR) of 60% expected for the next few years, the top executive said the company was also looking at acquisitions to increase the pace of capturing market share. Its latest acquisition is expected to close within this financial year, he said, but declined to share details.
Acquisitions route
iBus has made strategic acquisitions, which have increased its international presence, for instance, in the US, the UAE, Sri Lanka and the Maldives, and given it an edge in the hospitality and retail industries, which have also been the quicker revenue generators for the company. iBus acquired Chennai-based Microsense Networks in 2023 and Ubico Networks and D-VoiS Communications’ Wi-Fi-managed service assets in 2022.
Funding for the acquisitions will come from the equity it raised last year. The company raised ₹280 crore from the World Bank’s International Finance Corporation in September, and ₹1,680 crore from India’s National Investment and Infrastructure Fund (NIIF) in April. Sellaratnam noted that 70% of the funding would go into business development and the rest for acquisitions.
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