Vox Telecom has received fresh investment that values it and its associated companies Frogfoot and Hypa at a combined R14.4bn.The capital injection will be used to expand the companies’ fibre network in South Africa, with a goal of connecting 360,000 homes a year, while advancing the group’s new prepaid offering. Frogfoot Networks is the open-access infrastructure unit of technology and telecom operator Vox, acquired in 2015. The companies now operate alongside each other with common shareholders. Hypa is a prepaid internet service provider launched by Vox in 2021. On Monday, the group announced it had secured an undisclosed sum of capital “to accelerate fibre access across South Africa” through a mix of debt and equity. The new backing comes through three investor groups. The largest of these is the DNI Consortium, comprising DNI 4PL Contracts, JSE-listed Sabvest Capital, Masimong Group and Draper Gain International.The second major shareholder group consists of two partnerships managed by the general partners of Metier Capital Growth Fund III. EM-Three Investment Holdings, founded by businessman Simphiwe Mehlomakulu, is the third largest direct shareholder.Mehlomakulu was recently announced to be part of the $1bn takeover of Shell Downstream SA’s operations with Abu Dhabi’s ADNOC.The transaction ascribes a combined enterprise value of R14.4bn to Vox, Frogfoot and Hypa, with an after-debt equity value of R8.4bn, with debt facilities arranged by RMB.Abraham van der Merwe, founder and CEO of South Africa’s fourth-largest fibre network operator, Frogfoot, will lead the companies, together with Gert Koen as CFO. “This capital raise is designed for societal impact at scale,” said Van der Merwe. This comes two weeks after Frogfoot announced the launch of its prepaid fibre service as competition for fixed connectivity in township areas heats up.Dubbed Frogfoot Leap, the service provides homes with access “to reliable, uncapped high-speed internet without long-term contracts”.“Every additional home we reach in a township or lower-income community represents another family gaining access to the digital opportunities made possible by fibre,” said Van der Merwe. “Closing the digital divide is critical because it enhances access to education, financial inclusion, remote work and local micro-enterprises. The additional capital raised strengthens the companies materially and allows us to significantly step up our rollout velocity,” said Van der Merwe.Sabvest said it had subscribed for new shares in Frogfoot and Vox worth R754m, holding an 8.97% interest in the companies.In total, the DNI Consortium will hold 34.8% of the companies, of which DNI itself will hold 18.13% directly. Sabvest currently holds a 19.4% stake in DNI directly and indirectly. The transaction also incorporates equity participation from company management, resulting in a structure where no single shareholder will control Frogfoot or Vox post implementation. Ryan Noach, group CEO of DNI, said: “DNI, Frogfoot and Vox share a conviction that affordable, high-speed internet access is a social imperative. DNI’s philosophy is to partner with and support world-class founders and managers.“By bringing complementary experience in the telecommunications sector alongside high-quality financial partners, we are empowering an experienced management team to accelerate digital inclusion across South Africa.”Last week, telecoms infrastructure provider Comsol said it had secured a multibillion-rand investment to expand fixed wireless access from Andile Ngcaba’s Convergence Partners, Platform Investment partners and Wimsey Capital. Business Day