Wiom Secures $40 Million in New Funding to Enhance Internet Services

Wiom, an internet services provider based in Delhi, has successfully raised $40 million in a funding round spearheaded by Bertelsmann India Investments and Accel. Other contributors to this funding round include Prosus, Promaft Partners, and RTP Global.

Previously, the telecom startup secured $17 million during a Series A funding round led by RTP Global in July 2023.

The funds from this latest investment will be utilised to enhance its product offerings, increase personnel in technology and operations, and extend services into less connected towns and districts.

Wiom’s Unique Business Model

Wiom does not develop its own infrastructure or install cables. Instead, it provides tools that empower users and smaller internet service providers (ISPs) to share their home broadband connections with others in their neighbourhoods.

The company positions itself as an aggregator of internet service operators, boasting over 70,000 WiFi Access Network Interface hotspots. Its plans range from Rs 4 to Rs 16 for a two-day period, offering unlimited data access. Wiom aspires to connect 5 crore homes and reach a user base of 50 crore over the next five years.

Financial Performance and Challenges

In the fiscal year 2024, Wiom’s revenue saw a decline of 10%, dropping to Rs 10.8 crore from Rs 12.08 crore in the previous fiscal year. Moreover, the company’s losses increased sharply to Rs 44.5 crore in FY24, compared to Rs 5.78 crore in FY23.

Wiom faces competition from established players like Excitel, RailWire, Netplus, and BSNL. Additionally, it also contends with indirect competition from telecom-oriented broadband services such as JioFiber and Airtel Xstream within certain overlapping areas.