Member Investor: Linzor Capital Partners Company: Mundo Industry-Sector: Telecommunications
READ the latest deal case featuring Linzor Capital Partners‘ investment in Mundo
OPPORTUNITY Equal access to the internet is essential to ensuring access to information and knowledge, which fosters innovation and promotes more inclusive societies. While Chile has the highest internet penetration in Latin America, challenges remain to bridge the digital divide for lower-income and rural households. According to the country’s telecommunications regulator, nearly nine out of 10 Chileans have access to the internet, but only 56% have a fixed broadband internet connection. Lower-income and rural households rely primarily on prepaid mobile internet plans, as broadband services are either more expensive, unreliable or not available in certain areas. Only 21.4% of rural households have a broadband internet connection and 23.3% do not have access to the internet at all.
EXECUTION In October 2019, Linzor Capital Partners led a consortium comprising LP co-investors and Mundo’s management team to acquire 100% of Mundo. At the time, the company already had a network of over one million HP and more than 11,000 km of fiber. Linzor’s investment thesis was centered around supporting the company’s growth plans in fiber infrastructure, expanding its product offerings and implementing a robust commercial plan to attract new subscribers.
ESG IN FOCUS Mundo’s low-cost fiber broadband services generate a positive social impact by increasing the availability of fast and reliable internet for underserved populations. Mundo has a presence in 170 of the 346 districts in Chile and a third of its clients are in cities with fewer than 50,000 inhabitants. Many of the smaller localities served by Mundo were previously ignored by the incumbents, and their inhabitants did not have access to high-speed internet services. In addition, the company’s FTTH technology and disruptive price positioning have pressured dominant internet providers to upgrade their own technologies and lower their prices, making robust internet more accessible across the board….. download the full case study to read more.