Citymesh is raising nearly 70 million euros from Apollo to accelerate the rollout of Digi Belgium. The company is investing 50 million euros directly and increasing its stake in the telecom operator.
West Flanders-based Citymesh is securing 70 million euros from the American investment fund Apollo in the form of a loan. With these funds, it aims to strengthen its commitment to Digi. Since the launch in December 2024, Digi Belgium has attracted more than 120,000 mobile customers in Belgium and connected nearly 200,000 homes to its own fiber network. The operator aims to expand these figures to 2 million homes with fiber and 99.8 percent mobile coverage across Belgium by 2030.
The financing from Apollo enables Citymesh to significantly ramp up its investments in Belgium’s digital infrastructure. Citymesh co-owns Digi along with the Romanian parent group. It is investing 50 million directly into Digi, increasing its stake in the company from 23 to 34 percent. With the remaining capital, Citymesh intends to further expand its Private Networks portfolio both nationally and internationally.
Renewed vows
Mitch De Geest, CEO of Citymesh Group, emphasizes that together with Digi Communications, it aims to shake up the Belgian telecom market. Digi Belgium combines Citymesh’s local expertise and twenty years of experience with the scale and international experience of Digi Communications, which provides telecom services to 33.8 million customers in Romania, Spain, Italy, and Portugal.
The CEO of Citymesh states that Digi’s commercial progress is clearly visible and that the demand for a real challenger in the Belgian market is greater than ever. Digi wants to convince customers to make the switch with low prices. To better challenge the established players, Citymesh is pumping a fresh investment of 50 million euros into the company, through which Citymesh itself also acquires a larger stake.
However, Citymesh previously seemed to be taking the opposite path and reducing its stake in Digi. With this investment, it renews its commitment. “With Digi Belgium, we have embarked on an ambitious project that is structurally changing the Belgian telecom market,” De Geest clarifies. Together with Digi Group executive Valentin Popoviciu, he oversees the daily management.
Turbulent start
The financing supports the further rollout of fiber and mobile networks with significant efficiency gains. Due to heavy investments, Digi is currently operating at a loss, but the company aims to break even quickly and be profitable from 2027. External investments are then welcome to help bear the costs.
The launch of Digi has not been without growing pains. Digi experienced a bumpy start with internal reforms, during which executive Jeroen Degadt also left the ship, and the first customers were not exactly satisfied. During the rollout of the fiber optic network, haste and speed reportedly took precedence over following the rules. Following a complaint from Proximus, the Brussels court brought the fiber optic works to a halt.
Expansion of Private Networks
In addition to the investments in Digi, the financing also creates space for Citymesh Private Networks to expand into new customers and geographical markets. This segment focuses on business-critical mobile private networks for enterprises, industry, and public services. Private networks are crucial for supporting business 5G applications.
Citymesh is an established player in Belgium and the Netherlands for business network solutions, but is also starting to win more projects in France, Germany, and the United Kingdom, De Geest told De Tijd. Citymesh will invest the remaining millions from Apollo that do not go directly to Digi here.
Stepping stone to more
In the long term, Citymesh would like to work more closely with Apollo. How that will take shape remains to be seen. Whether it remains limited to investing or brings Apollo on board with Digi are both possible avenues. The transaction is expected to close in the coming weeks, subject to customary closing conditions.
“This collaboration with a global player is a powerful signal of confidence in our project and our team. It confirms what we see every day: the rollout of fiber and mobile is becoming increasingly efficient, and the commercial traction is there. Anyone who breaks open a market that has been comfortably divided between three players for 25 years should not be surprised by the headwinds,” De Geest continues.
Anyone who breaks open a market that has been comfortably divided between three players for 25 years should not be surprised by the headwinds.
Mitch De Geest, CEO Citymesh