Zuku Tv which is owned by Wananchi online is in preparation to launch a funding on all sides of of between Sh4.3 billion ($50 million) and Sh8.7 billion ($100 million) to aid in the expansion of its cable business in Tanzania and Uganda before the end of next year.
Richard Bell, the Group’s CEO said that the firm has it in mind to raise the funds both locally and internationally, adding that it has drawn an expansion plan in these two markets.
Zuku already has cable TV service in East Africa but said that there are indications of increasing demand in Uganda and Tanzania and for this reason the need to grow its cable footprint there.
“We are looking to grow our cable TV in Tanzania and Uganda to meet the growing demand, that’s why we will be launching this fresh funding round before the end of next year,” said Bell.
In 2011, Wananchi was able to raise Sh4.9 in growth capital from investors including Liberty Global, Oppenheimer Funds, Canada-based emerging markets fund manager Sarona Asset Management, and African private equity firm East Africa Capital Partners.
Since its arrival in 2008, the pay Tv company, Zuku has been trying to extract the market from market leader DStv through its lower-priced bouquets, but has has not beeb quite successful simply because of the wide popularity of the rival’s English Premier League football show.
