The four-year old startup which competes with but trails broadband services providers Bharti Airtel, Connect Broadband and even public sector unit MTNL, plans to invest an Rs 50-70 crore for expanding services, beginning from Rajasthan, Haryana and Maharashtra, Nikhil Bansal, President, said. “We would prefer to have investors who can be advisors (to the business)”.
He however didn’t say how much the company was looking to raise.
Bansal said that the company needs funding for national expansion and is open to diluting 20-24%equity to private investors. “We would prefer to have investors who can be advisors (to the business)”.
An initial investment of Rs 10-20 crore will go towards building business in the first three states. The company aims to clock 100,000 customers by March 2017, up from 40,000 customers in Delhi and NCR at present. In 2016, Nextra will double its marketing budget to Rs 60 lakh a month to get more customers onboard.
The Gurgaon-based company offers services to mid-sized companies and has a large customer base in the real estate sector, it also plans to increase share from the enterprise side of the market. Profitable since the past two years, Nextra aims to close the present financial year with Rs 40-50 crore in revenue, which it aims to raise to Rs 80 crore by March 2017.
The company is in talks with BSNL and MTNL to lease fibre lines for expansion into tier 2 and 3 cities besides rural areas, complimenting the government’s Digital India program, Bansal said.
Source: The Economic Times