CSquared raises additional funding from Convergence and IFC
CSquared, a pan-African technology company making investments in telecommunications infrastructure, has announced fresh equity investments from both new and existing shareholders.
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CSquared, a pan-African technology company making investments in telecommunications infrastructure, has announced fresh equity investments from both new and existing shareholders to finance its growth objectives.
The company has raised $25 million in new equity from the Convergence Partners Digital Infrastructure Fund (CPDIF), the International Finance Corporation (IFC) and the International Development Association’s Private Sector Window Blended Finance Facility. This is the first tranche in a broader $65 million investment programme to finance CSquared’s expansion and growth. Additionally, CPDIF has simultaneously acquired the stake in CSquared held by Google LLC.
The new investment into the company will be used for network expansion as CSquared continues to drive digital infrastructure developments across its footprint and the broader African region.
CSquared was launched as a project within Google in 2011 with the ambition of building metropolitan fibre optic networks in sub-Saharan Africa as a carrier neutral operator of shared infrastructure.
In October 2017, in order to accelerate the scope and scale of the business, additional investors namely, Mitsui & Co., Convergence Partners Communication Infrastructure Fund and IFC came onboard to deepen existing market penetration and expand geographically as the partners looked to commercialise the company. Under the guidance of its shareholders, the company has established operations in six markets, namely Uganda, Ghana, Liberia, Kenya, the Democratic Republic of Congo and Togo. In addition, CSquared’s collaboration with Google in Togo was critical to delivering the first continental landing of the Equiano cable in Africa in March 2022, significantly transforming the affordability and availability of internet access in this previously under-served market.
Andile Ngcaba, chairman and founding partner of Convergence Partners commented, “The opportunity to increase our investment in CSquared via our most recently raised fund comes at a pivotal time for African digital development. The benefits of world-class connectivity span all layers of society and have never been more tangible. As investors in the company since 2017 we have had a front-row view of the tremendous impact of open-access networks on the development of the African ICT ecosystem. The combination of developmental impact, as well as strong commercial returns makes this an attractive investment for CPDIF and we are delighted to be able to shape the next phase of this journey.”
FTI Capital Advisors DIFC Limited (FTICA) acted as financial advisor to CSquared on the capital raise and concurrent sale of the stake in CSquared held by Google LLC.
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