Investment holding company Mineworkers Investment Company (MIC) has invested an undisclosed amount to acquire a 24.85% stake in internet service provider, TooMuchWifi.
This comes after MIC wrapped up what it described as a “successful investment campaign” targeting emerging, high-growth potential businesses in SA.
The TooMuchWifi investment is expected to play a major role in enabling the Cape Town-based business to achieve its ambitions of providing economic internet solutions to all South Africans, says a statement.
Further, the funding will be used to appoint a South African CEO and expand the local leadership team to drive expansion at TooMuchWifi.
Commenting on the investment, MIC impact investment manager Thato Ntseare says: “MIC is committed to investing in businesses that will propel South Africa forward. We are an organisation that is rooted in the country we serve, and with every investment it is important for us to ensure a positive impact.
“We are excited with the potential that TooMuchWifi presents to significantly expand access to affordable data to communities, and the catalytic role that can play in driving economic growth.”
Founded by Ian Thomson and Jonathan Endersby in 2016, TooMuchWifi aims to bridge the connectivity gap in SA by bringing fast, uncapped and affordable fibre-backed internet to underserved, densely-populated areas, like townships.
According the company, it has established basic internet infrastructure in more than 35 underserved local communities, with over 120 000 customers.
Through its proprietary technology stack and network, the business offers both hotspot data bundles and a month-to-month subscription model that provide fast internet and 99% uptime, including during load-shedding, to residential and small business customers.
The uncapped lines are prepaid monthly deals that range between R249 and R499, to make it easier for thousands of people to work, enhance customer service in their businesses, access study-material and stream online content.
According to the statement, TooMuchWifi’s customers have been able to realise a combined saving of between R500 million to R900 million, based on the data utilised, when converting from a mobile per gig offering to its uncapped and hotspot offerings.
Thomson believes the investment will go a long way in servicing and accommodating the low-income, informal customers who have, in the past, not been able to afford technological advancements and digital opportunities the fourth industrial revolution has to offer.
“This partnership ushers in an exciting new era of professionalism, a clear capacity to scale, and a visible demonstration of our commitment to growth and finding deserving candidates. The new CEO can count on the support and capital resources needed to democratise internet access and associated connectivity-enabled opportunities for South Africa.
“This investment will not only grow our business but improve the lives of our customers and their communities. We believe everyone should have access to affordable data, and MIC is helping us make that a reality for more South Africans.”
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