CyanConnode Holdings plc, a global leader in narrowband Radio Frequency smart mesh networks, has announced that its Indian subsidiary, DigiSmart Networks Pvt. Ltd., has received a Letter of Intent for a £70 million contract from the Government of Goas Electricity Department. This contract, marking CyanConnodes first major AMISP contract, will involve the deployment of approximately 750,000 smart meters.
This success positions CyanConnode as a lead bidder for smart metering projects in India and significantly enhances its credentials and ability to secure future tenders. The contract is expected to bring about a step change in the companys revenue growth and profitability over the next 2-3 years, with an outstanding order book of approximately £180 million.
To support this project, CyanConnode secured a £5 million unsecured loan from its major shareholder, Axia Investments Limited, ensuring sufficient cash reserves and working capital. The company is also engaging with strategic financing investors to further enhance its growth potential as an AMISP.
The project is anticipated to begin within the next few months, with an implementation phase of 27 months followed by a support and maintenance period of 93 months. DigiSmart will project manage and deliver an end-to-end solution, including meter supply, RF and cellular communications, and core services.
This contract is a pivotal achievement for CyanConnode, validating its strategy and establishing its presence in the smart metering market.