Cash-strapped In a cost-cutting drive, Vodafone Idea allegedly expelled over 25,000 of its retail partners throughout the nation. According to the Economic Times, Vi has pulled its partners from the multi-brand shop market, and the business has stopped paying a fee.
In the last year, VIL has continued to lose consumers to competitor companies Reliance Jio Infocomm and Bharti Airtel. As a result, VIL was adding additional stores to ensure that its customer acquisition would not suffer.
According to ET, Vodafone Idea has a pan-India network of 4-5 lakh retail contact points, the bulk of which are multi-brand stores that provide services to all carriers. According to the business daily, several of the terminated businesses provided negative returns to Vodafone Idea in terms of client acquisition expenses.
In the March quarter, Vodafone Idea’s consolidated loss was reduced to 6,418.9 crore.
Revenue from operations climbed by almost 3% to 10,531.9 crores in the third quarter, up from 10,239.5 crores the previous year.
VIL achieved its first yearly revenue rise from operations since the merger. Consolidated revenue from operations increased 9.5% to 42,177.2 crores from 38,515.5 crores the previous year.
Tariff increases, improved customer mix, and 4G subscriber additions aided yearly revenue growth, according to the business.
Vodafone Idea lost 12.12 lakh wireless subscribers in March, according to TRAI statistics. In March, the company’s mobile user count fell to 23.67 crore from 23.79 crore the previous month.
Separately, Vodafone Idea is said to be planning a 14,000 crore equity injection as part of its business resuscitation strategy. Contributions from the company’s current promoters, Aditya Birla Group (ABG) and Vodafone Group Plc are included in the proposal.
ABG and Vodafone Group will spend 2,000 crores in new stock, bringing the promoters’ total investment to 5,000 crores since the government’s telecom revival package was announced in September 2021.
