Indian market newcomer Reliance Jio aims to raise $4.4 billion from existing investors to increase capacity on its 4G network, Bloomberg reported.
Parent company Reliance Industries filed a notification with Indian authorities over the weekend outlining its intention to raise the funds through a rights offer – a move offering existing stakeholders the opportunity to increase their holdings.
Reliance chairman Mukesh Ambani (pictured) already invested an estimated $25 billion to launch Jio’s 4G service across the country.
Since entering the market in September, Jio offered a number of free data and call promotions to lure customers. In December, the company said it added 52 million subscribers in its first three months of operation and announced the extension of its free data offer into 2017.
In response to Jio’s market entry, the country’s three largest operators – Bharti Airtel, Vodafone and Idea Cellular – launched their own discount deals in a bid to retain their existing customers.
Competition, though, looks to be taking its toll. In November Vodafone wrote down the value of its Indian business by €5 billion, citing increased competition in the market.