Vodafone Idea Seeks Alternative Funding Routes

Telecom service provider Vodafone Idea (Vi) is actively exploring non-bank avenues to raise funds for its capital expenditure plans. Outgoing CEO Akshaya Moondra revealed this during the June quarter earnings call on August 18.

He explained that while discussions with banks are ongoing, progress has been slow due to uncertainty around adjusted gross revenue (AGR) dues. This has forced the company to look at other options to keep its capex cycle running.

AGR Dues Settlement Key for Bank Support

Moondra stressed that Vodafone Idea has urged the government to resolve the AGR issue ahead of the March 2026 deadline. Early settlement, he said, would reassure lenders and enable banks to extend much-needed financial support.

“Given the fact that we are keen on maintaining a continuity of our capex, which has been going on since last year, we are looking at non-banking sources of funding… a lesser amount so that we can continue with the capex cycle,” Moondra noted.

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Talks with Private Credit Funds

His comments come shortly after reports that Vodafone Idea has begun early discussions with private credit funds including Davidson Kempner, Oaktree, and Värde Partners. The aim is to raise a small tranche of debt rather than the full ₹25,000 crore previously outlined.

This move highlights Vi’s struggle to secure traditional financing while simultaneously keeping its network expansion plans alive.