Rebecca Hawkes | 19-09-2013
Wananchi Group, owner of Kenya-based pay-TV platform Zuku TV, is seeking between US$50 million and $100 million to expand its East African satellite and cable services, according to Balancing Act Africa.
The Wananchi Group has raised $300 million since start-up in 2008, with investors including Liberty Global, Altice Group, Oppenheimer Funds, Sarona Asset Management and East Africa Capital Partners.
It is now reportedly planning a new round of financing before the year end, to expand from its existing cable operations in Kenya, Uganda and Tanzania, and satellite distribution across six East African countries.
“We're looking to grow the footprint of the business, both for the satellite TV and the cable business and so whilst the existing business plans are fully funded, we would anticipate raising additional rounds of finance in the future to fund expansion into the new markets,” Wananchi’s chief executive officer Richard Bell is quoted as saying in Balancing Act.
Having recently completed its five-month migration from SES satellite NSS-12 to the SES-5 located at 5 degrees East, the Wananchi Group plans to increase its transponder capacity as it grows its East African pay-TV operation.
Zuku TV is currently using four transponders on SES-5 with three to be used as it increases its customer base in Kenya, Tanzania, Uganda, and up to 12 more countries in Sub-Saharan Africa during 2014.