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Kenya's Yu Secures $150 Million in Funding from Parent Shareholder
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Kenya's Essar Telecom (which trades as Yu) has secured a capital injection of US$150 million from its Indian parent company to help pay bank loans.
Yu's CEO Madhur Taneja told The Star newspaper that the mobile network had been incurring huge interest costs from the loans but will now be able to finance its expenses internally and comfortably.
"We have paid off all our debts for the existing business. That is the biggest burden for any telecom. We do not have any debt at all, its all equity," said Taneja.
India's Essar Group owns 80% of the company and has invested around US$500 million over the past four years, but has still struggled to generate meaningful returns from its investment.
The mobile network had 2.3 million subscribers at the end of last year, but has said that it needs 4 million customers to break even.
On the web: The Star
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