Target Company Overview

Wiom, an innovative internet infrastructure platform based in Delhi, focuses on expanding affordable broadband access throughout India. Recently, the company announced that it secured $40 million in a growth equity round, spearheaded by Bertelsmann India Investments and Accel. This significant funding includes contributions from Prosus, Promaft Partners, and existing investor RTP Global, with roughly 90% of the capital raised classified as primary funding, according to founder Satyam Darmora.

Founded in 2015 originally as i2e1 and rebranded as Wiom in 2021, the firm has distinguished itself as India's largest licensed Public Data Office Aggregator (PDOA) under the Prime Minister’s Wi-Fi Access Network Interface (PM-WANI) initiative. This program aims to enhance the availability of low-cost public Wi-Fi hotspots, particularly in rural and underserved areas

Industry Overview

The expanding internet landscape in India reflects a growing demand for accessible digital infrastructure, especially in regions with limited connectivity options. As of now, only about 10% of India's 200 million households have access to affordable and unlimited internet services. Wiom addresses this critical gap through its unique asset-light approach, allowing individuals and small internet service providers (ISPs) to redistribute home broadband via affordable, sachet-sized internet access packs.

Uttar Pradesh and parts of Eastern India serve as key markets for Wiom, where the company partners with approximately 100 ISPs, primarily small regional players. This strategic collaboration facilitates access to around one million active users per month, proving that the demand for cost-effective internet solutions is substantial.

The challenges presented by high costs and lack of accessibility make Wiom's offerings especially important. By allowing users to connect through a hotel-like login portal without the need for app downloads, the platform presents a simplified solution that significantly reduces internet expenses. In many cases, customers can even eliminate their broadband bills entirely by sharing access with others.

As more individuals come online, there is an increasing urgency for companies like Wiom to innovate and develop sustainable models that cater to this emerging customer base. With India striving to bridge its digital divide, Wiom is positioned to play a crucial role in democratizing internet access across the nation.

Rationale Behind the Deal

The recent funding round will primarily be utilized for product development and operational scaling, with a strong emphasis on hiring skilled talent in technology and operations. Wiom's approach to addressing the critical issue of accessibility highlights its potential for growth, making the investment highly strategic for its backers. By leveraging the capital to enhance their platform and expand into underserved towns and districts, Wiom aims to facilitate a substantial increase in user adoption.

The opportunity to fill the accessibility gap and significantly decrease internet costs presents a compelling case for investment in Wiom. As the demand for affordable internet services rises, the company's scalable model positions it well for the future.

Investor Profile

Bertelsmann India Investments and Accel, leaders in growth equity and venture capital, are two of the primary investors in this round, recognizing the transformative impact of Wiom's business model. Rohit Sood from Bertelsmann remarked on the company's mission to bring affordable internet to the masses and its foundational role in enhancing digital infrastructure. Meanwhile, Pratik Agarwal from Accel expressed admiration for the founding team, emphasizing their ambition to revolutionize the industry and their commitment to bridging India’s digital divide.

The involvement of such reputable investors not only validates Wiom's innovative approach but also offers significant guidance and strategic support as the company evolves and expands into new markets.

View of Dealert

Investing in Wiom is seen as a promising opportunity, given the urgent demand for affordable internet access in India. The company's innovative distribution model for broadband allows it to effectively meet the needs of underserved communities, thereby tapping into a growing market segment.

Furthermore, Wiom’s impressive plans for annual growth of over 100% and its commitment to advancing technology through its “Tech for Future” initiative signal a forward-thinking approach that prepares it for future challenges. This proactive stance, combined with a strong management team, enhances its investment appeal.

Moreover, Wiom's partnership with local ISPs not only boosts the ecosystem but also encourages first-time broadband users to join, establishing itself as a complimentary force rather than a competitor. This collaborative strategy is likely to yield favorable outcomes for both key players and end users in the industry.

In conclusion, Wiom seems well-positioned to make a significant impact in India’s internet landscape, potentially closing the digital divide and providing essential connectivity solutions. Investors can view this as a strong opportunity considering the company’s scalability and the socio-economic need for improved access to the internet.

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