A consortium led by Oaktree Capital is reportedly lining up to pump at least $2 billion into the struggling telco according to sources

Vodafone Idea has been on the brink of collapse for some time now. Struggling to compete with disruptive newcomer Reliance Jio and crushed under the weight of enormous adjusted gross revenue dues, the company has threatened to fold multiple times, with its parent companies repeatedly reluctant to help fill its coffers.


The company did receive some relief back in September, however, when the Supreme Court agreed to allow Idea 10 years to pay back the billions of dollars it owes the government. This decision allowed the company to finally plan a path away from insolvency, with Idea latter announcing goals of raising around $3.4 billion through the sale of shares and debt in order to give it a more stable financial position.


Now, rumours suggest that investors may be ready to take them up on that offer, with a consortium backed by Oaktree Capital and Varde set to potentially invest between $2 billion and $2.5 billion into the company, according to media sources.


With relief from the Supreme Court coupled with new investment, Idea may yet find a way to dig itself out of financial hell. As part of this project, Idea announced last week that it is considering raising its tariffs by 15–20% in the next few months, which saw its shares rise by 12%. 


Nonetheless, the company is struggling to compete with the likes of Jio and will need more than just short term funds if it is to re-stabilise in the volatile Indian telecoms market. 


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