The Spanish operator Finetwork makes the capital increase official so that a new partner can join its shareholding. On this occasion, the expansion is made for a value of 10 million euros to welcome the company Kai Capital, directed by the former president of Racing de Santander, Alfredo Pérez Fernández, to its shareholders and board of directors.
This new agreement for the Alicante operator has financing that is in two tranches: one for an amount of 10 million euros of debt and a second tranche of 10 million euros via a capital increase so that it becomes a shareholder. In any case, both sections will be destined entirely to finance the growth of the operator in Spain.
Finetwork wants to continue growing
The Alicante telephone company welcomes Kai Capital, founded in 2021 by businessman Alfredo Pérez Fernández. On this occasion, Finetwork will be able to receive new financing that will come in two tranches, as we mentioned previously: a debt tranche in the amount of 10 million euros, and another of 10 million through the capital increase for the entry of this new partner into the shareholding. And, with this new agreement, the operator seeks to continue fulfilling its objective of growing in our country. However, they are waiting for the operation to be approved at the General Shareholders’ Meeting in the coming days.
With this agreement, the operator advances with its financing process, which will be complemented in the coming months with the arrival of financing via bank debt. As the company explains, “these funds will be used to leverage the rapid growth of the company, including investment in the digital transformation of the business and the expansion of its commercial network.”
And to be more exact, Finetwork is focusing this year on the launch of new websites and mobile apps. For example, the new design for the website will be released in the next few days, while for the app we have to wait until September. They also seek to boost corporate business, the expansion of the store network (the goal is to reach 200 stores, right now they have 96) and the development of a new strategy based on improving the Customer Experience. By March 2025, “the company will be completely updated in systems, key to carrying out Vodafone’s wholesale agreement, to stop being a reseller and be a real virtual mobile operator.”
A new partner to reach 3 million customers
Today, this operator already has a portfolio of up to 1.2 million active customers. However, Finetwork has a forecast of reaching 3 million customers by 2027. On the other hand, it must be taken into account that at the end of last year, the operator’s debt stood at 1.5 times ebitda. And after the closing of the bank financing process, the maximum level of debt will be around 2.5 times EBITDA, so it will be below the average leverage levels of the telecommunications sector in Spain.
In 2023, the operator’s net worth was 4 million euros. But, thanks to this new expansion, the operator rises to 26 million in 2024. Likewise, it must be taken into account that there has been an income growth of around +15/20%. And, on the other hand, the operator confirms that they are making 140% in monthly gross sales. Regarding investments, the operator explains the following: «We have invested a lot in sponsorships, if you remove the excess money invested in sponsorship, the “pianel” would have been positive. We did not renew Betis or Real Sociedad. We have reduced investment in sponsorships by 8M.”
In addition to the different objectives or the level of debt of the operator, it is now going to add a new partner to its shareholding, as well as becoming part of the company’s Board of Directors: «We are very happy to announce the investment in Finetwork , a company that over the last 5 years has been able to combine growth and financial solvency, and that currently has the best tools to become the first MVNO in the national market. As new partners in this exciting project, we hope to be able to contribute our extensive expertise in the telecommunications sector, and especially in the field of retail and corporate business, two areas considered strategic for the company,” says Alfredo Pérez, president. by Kai Capital.
