Vumatel, a leading fibre-to-the-home (FTTH) network operator in South Africa, has received the second and final tranche of an expansion capital facility from Vantage Capital, Africa’s largest mezzanine fund manager.
The company received the final tranche (US$8.3 million) of the funds after it met certain operational and financial milestones set by Vantage.
The funds, totalling US$16.6 million, will be used for the on-going expansion of Vumatel’s fibre-to-the-home (“FTTH”) network in a growing number of Johannesburg and Cape Town suburbs.
“The provision of high-speed, quality broadband has been shown to have positive social and economic benefits for a country. Vantage is proud to support Vumatel to expand their network and to facilitate the provision of high quality broadband to more South Africans,” said Luc Albinski, Managing Partner at Vantage Capital.
Established in 2014, Vumatel seeks to supply affordable high-speed fibre optic network connectivity to homes in South Africa.
Vumatel began deploying its open access FTTH network in October 2014 in Parkhurst, a Johannesburg suburb. Since then, the company has rapidly expanded its network to cover 22 suburbs, reaching more than 33,000 homes.
Driven by strong customer demand for reliable high speed Internet, Vumatel has a robust pipeline of additional suburbs for further network deployment.
Vumatel, which operates an open-access network using the latest Active Ethernet technology, is headquartered in Johannesburg and employs over 500 people.