New Delhi: Bharti Airtel<\/a>, which has housed all its digital assets under Airtel<\/a> Digital unit, is discussing making it a parallel entity to the telco, opening up the option of monetising a separate asset in the future, said chairman Sunil Bharti Mittal. The new structure could remove telecom regulatory overhang over Airtel Digital, which could even be listed in two-three years.
In an interview to ET, Mittal said going forward, expansion in financial services — which includes hopes of becoming a small finance bank, but not a full-fledged one — would be a big focus area for the telco.
Bharti Airtel itself has pivoted into a technology company<\/a>, he said, and has emerged stronger from a bloody tariff battle since the entry of Reliance Jio<\/a> in September 2016, with a roughly 35% revenue market share, its highest ever. “Perhaps, some people may have underestimated its (Airtel’s) inner strength,\" he said.
“There is something called Airtel Digital now, under which all the digital entities are being housed. Around 119 million active monthly users are sitting here…a lot of advertising revenue is going up,” Mittal told ET. “What we are thinking about is a step-up company, which will then be the holding company of Airtel and Digital…Digital could become parallel (to Airtel)…the thinking is to restructure it so that we have similar outcomes (like investments in Jio Platforms<\/a>).”
He added that the reorganisation will take several months and investments in the digital business will be sought after it is scaled up. From the Rs100 crore revenue currently, Airtel Digital should scale up to Rs 1,000 crore.
Jio Platforms, which houses the digital and telecom assets of Reliance Industries<\/a>, last year received over Rs 1.52 lakh crore in investments by giving up nearly 33% stake to 13 investors, including Facebook, Google<\/a>, Intel<\/a> and Qualcomm<\/a>.
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