Gigaclear, the fiber broadband network provider, plans to raise hundreds of millions of pounds in further funding amid an industry-wide race to modernize Britain’s communications infrastructure.
Sky News has learned that Gigaclear is working with bankers at Rothschild to raise between £200m and £300m in additional capital for its rollout.
The capital increase, which could involve a combination of debt and equity, is one of a series of attempts by alternative network providers — or altnets — to secure enough funding to build real-scale businesses.
The market is led in terms of number of properties by BT’s Openreach division, trailing Virgin Media 02 and CityFibre Holdings.
Dozens of altnets have been launched in recent years, many of which target specific regions of the UK.
Like Gigaclear, Hyperoptic, G.Network and Community Fiber have raised significant funds to fuel their expansion.
Gigaclear’s network is present in 22 provinces and passed the threshold of 300,000 buildings in May.
That milestone meant that the company, which focuses on rural areas in central and southern England, has met 60% of its way towards its target of connecting 500,000 properties by December 2023.
Founded in 2010, Gigaclear has already raised hundreds of millions of pounds from investors, including Infracapital, M&G’s infrastructure investment arm.
A Gigaclear spokesperson declined to comment.