Vodafone Idea Explores Private Credit Route for Funding

Vodafone Idea (Vi), battling persistent financial stress, is exploring a new funding route after struggling to secure fresh loans from banks. According to sources, the telco is in early discussions with private credit funds including Davidson Kempner, Oaktree, and Värde Partners to raise a small tranche of debt.

Funding Pressure Mounts

The company faces a potential cash crunch by the March 2026 quarter, as per its internal estimates. Without timely funding, Vi may be unable to sustain its large-scale capex programme by the fourth quarter of the current financial year.

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Banks Reluctant to Lend

Despite multiple rounds of discussions, lenders have so far refrained from extending fresh loans to the debt-laden telecom operator. This has pushed Vi to seek alternative financing to avoid stalling its expansion plans.

Capex Plans at Stake

Vodafone Idea has ambitious capital expenditure plans worth ₹50,000–55,000 crore, mainly to expand and upgrade its 4G and 5G networks. These upgrades are critical to reducing customer churn and staying competitive in the telecom market.

Target: Funding by November

To ensure there is no disruption in its network expansion, the telco aims to secure funding by November this year. Early closure of this funding round could help it maintain momentum in its infrastructure development.

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