Bharti Airtel Acquires Stake in Lavelle Networks to 45.6% as Part of Startup Accelerator Program
Bharti Airtel, India’s leading telecommunications company, has expanded its ownership in the SD-WAN startup, Lavelle Networks, by acquiring an additional 20.6% stake. This strategic move brings Bharti Airtel’s total stake in Lavelle Networks to 45.6%, further solidifying its position in the SD-WAN sector.
The acquisition will be completed in multiple tranches, following a prior communication on January 31, 2022. Bharti Airtel disclosed the agreement in a stock filing, stating, “The Company has entered into an agreement resulting in the acquisition of an aggregate 45.6% stake in Lavelle Networks Private Limited, in which the Company currently holds a 25% stake.” The transaction falls under Bharti Airtel’s Startup Accelerator Program, aimed at providing support to early-stage Indian tech startups.
On Tuesday, Bharti Airtel’s share price closed at ₹891.90 per share on the BSE, representing a 0.68% increase following the news. It’s worth noting that Bharti Airtel had initially acquired a 25% stake in Lavelle Networks in February of the previous year. Additionally, ASM Technologies, a global technology engineering and product development services provider, also made a follow-on investment in Lavelle Networks.
Bharti Airtel’s Performance Outlook for Q1 FY24 Appears Promising:
The first quarter of the current financial year is expected to bring modest growth for Indian telecom companies, including Bharti Airtel. This growth is anticipated to be driven by tariffs and an assumed improvement in the subscriber mix. Furthermore, EBITDA is projected to experience a single-digit growth rate. Bharti Airtel, along with Reliance Jio, is positioned for a strong performance in the first quarter of the financial year, with double-digit year-on-year sales growth expected. According to Kunal Vora, Head of India Equity Research at BNP Paribas, Bharti Airtel and Jio are likely to report double-digit sales growth YoY due to market share gains.
In his report, Kunal Vora stated, “With stable tariffs for over a year now, we expect the Indian telecom industry revenue growth to moderate to 8-9% YoY in 1QFY24, assuming an improving subscriber mix as more customers adopt 4G services.”
About Bharti Airtel:
Bharti Airtel Limited is a global telecommunications company that operates in 18 countries across Asia and Africa. The company’s headquarters are located in New Delhi. Bharti Airtel Limited provides 2G, 3G, and 4G wireless services, as well as mobile commerce, primarily in India.
About Lavelle Networks:
Lavelle Networks Private Limited specializes in providing software solutions. The company focuses on designing and developing a software-defined networking platform that addresses the connectivity challenges faced by distributed enterprises when connecting over wide area networks (WANs). Lavelle Networks primarily serves customers in India.
For more of the Latest News, Click Here
