Vodafone Idea (Vi), which was once a leading brand in Indian telcos, is fighting for survival. After battling losses for years, the company’s board has finally approved a plan to raise ₹20,000 crore. The move comes at a time when Vi is facing serious financial trouble and a shrinking customer base. It’s a big step, maybe even a last hope, to turn things around.
Board Approves Fundraising Plan to Boost 4G and 5G Expansion
The board of directors recently gave the green light to bring in ₹20,000 crore. Now, how they’ll raise this money, whether through loans, equity, or other ways is still being figured out. The plan is to use this fund to expand their 4G and 5G network. They believe better services might help win back users. The idea is simple: better network, better experience, more people stick around.
Net Loss Rises to ₹7,166 Crore in March Quarter
Vi’s latest financial report wasn’t great. In the March quarter, the net loss increased to ₹7,166 crore. That’s up from ₹6,609 crore in the previous quarter. It’s not a small number. The losses simply keep mounting in spite of all the efforts. And every time there’s a small improvement, a bigger issue seems to come up.
Subscriber Count Drops Below 200 Million for the First Time Since Merger
Back in 2019, when Vodafone and Idea merged, hopes were high. But now, their subscriber count has dropped below 200 million. In March, the number fell to 198.2 million. Even after launching 5G in cities like Delhi and Mumbai, customers continue to leave. People just aren’t sticking around.
Auditors Raise Red Flags, Management Remains Hopeful
Auditors from SR Batliboy and Associates recently raised concerns. They said the company’s cash flow is under pressure, and financial conditions are weak. But the company’s top managers sound a bit more upbeat. They believe the subscriber loss has slowed, and that revenue per user is slowly going up.
Tough Road Ahead Against Jio and Airtel in 5G Rollout
In Chandigarh, Patna, Mumbai, and Delhi NCR, Vi has launched 5G. Now they want to launch in all 17 circles where they have spectrum. The difficult part is that Jio and Airtel are already far ahead. Gaining ground in such a competitive market won’t be easy. Still, Vi is trying. They may be down, but they’re not out yet.
